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Short and sharp, NZ Sales Manager is New Zealand's free e-magazine for sales professionals.It delivers thought provoking articles from some of New Zealand's leading sales experts, along with interviews, info and ideas to help thousands of motivated sales managers, business owners and sales professionals increase sales throughout the country. Subscribe at our subscription page and get a new issue of NZ Sales Manager emailed to you every four weeks - for free!
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JUNE 3rd 2009 / IssUE 24
WHY DO PEOPLE SAY YES?The Psychology of Influence
WHY iS SELLing
STiLL A DirTY WOrD?
it’s Time to rewrite the Dictionary
nZ’s e-mag for sales leaders
SALES FOrEcASTing Where to Begin?
NZsM / JUNE 3rd 2009 / 2
JUNE 3rd / IssUE 24
THiS WEEKS MUST rEADWHY DO PEOPLE SAY YES?An exploration of the psychology of influence.
WHY iS SELLing STiLL A DirTY WOrD? Paul Newsom on the definition of selling today and why it’s time to rewrite the dictionary.
nZSM cALEnDAr
TWO MinUTE TOP-UPSALES FOrEcASTing How to start building a forecasting system which looks after many of your long and short term needs.
rESOUrcE cOrnErTHE ricHEST MAn in BABYLOnThe simple secrets for achieving personal wealth.
SALES TrAining DirEcTOrY
THE cLOSE
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ABOUT /
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 / Richard Liew
ArT dIrECTOr / Jodi Olsson
GrOUP EdITOr / Trudi Caffell
AdVErTIsING/CONTENT ENQUIrIEs /
Phone Richard on 09 523 4112 or email
AddrEss / NZ Sales Manager, C/- Espire
Media, PO Box 137162, Parnell,
Auckland 1151, New Zealand
WEBsITE / www.nzsalesmanager.co.nz
NZsM / JUNE 3rd 2009 / 3
I used to say that sales people are the most important people in business.
Sometimes this didn’t go down too well with non-sales people. But after working
with many businesses over the years, my views have changed. I am now of the firm belief that it’s not sales people who are the most important people in business, but Sales Managers.
While a good sales person may be able to increase their sales by 25% or 50% in a year, a good sales manager has the potential to increase the sales of a whole team or a whole company by 25% to 50%. And while the poor performance of a single sales person may not be a business killer, the poor performance of a whole sales team certainly can be.
Quite simply the ability or inability of a sales manager gets magnified and the more people in the sales managers’ team, branch or division, the greater their ability to make or break a company.
And while the position of sales manager may have certain privileges, it also comes with huge responsibilities and a lot of pressure. Whether your title is Sales Manager, Team Leader, Branch Manager,
GM or Business Owner, if you’re in charge of the
sales team it is you who is ultimately responsible for the performance of your company’s sales people – not a responsibility for the faint hearted, and not a responsibility most sales people can handle. As many successful sales people have found out, being a good sales person is certainly no guarantee that you will be a good sales manager.
But given the importance of sales managers, how many businesses have a company training or induction program for their sales managers? How many businesses understand the challenges sales managers face or how to support them in their role? In my experience many businesses invest more time on their processes and systems for cleaning their office than for their sales managers and sales teams.
Sound familiar to you? If so it’s my hope that we can provide you, the most important people in business, with some much needed encouragement, inspiration and ideas to help you make the changes New Zealand businesses need is worth more than their weight in gold.
Happy selling!
Richard
NZsM / JUNE 3rd 2009 / 4
T H I S W E E K ’ S M U S T R E A D
ost people will probably associate the words
influence and persuasion with the sales
process. However, influencing – getting
another person to accede to your requests – is at the core
of most soft skills including leadership, negotiation and
teamwork. All of these functions require us, at some stage,
to influence and persuade others.
It may be influencing customers, colleagues, friends – even
our children – to buy, do, accept or believe in something
or someone. The ability to influence others in an ethical
manner is a greatly underrated competency and one that
many of us do not do well. However, new research has
highlighted that persuasion skills can be learnt by almost
any individual. Enter, Dr Robert Cialdini.
If you want to sell anything, influence anybody or motivate
action I urge you to read Cialdini’s brilliant book, Influence,
Science and Practice. Cialdini is a psychology professor
at Arizona State University. He is the most cited social
psychologist on the subject of persuasion in the world.
As the book’s title states, the content is based on science
– Cialdini has examined hundreds of psychological
experiments on persuasion to form his core thesis. But
what’s really impressive is that he actually took three years
off to work as a ‘spy’ in a number of jobs to understand
how his theories held up in the everyday working
environment.
Cialdini’s influencing theories centre on six key constructs
that are easy to learn and apply. They are: reciprocation,
commitment and consistency, social proof, likeability,
authority and scarcity.
Let’s have a brief look at each.
M
WHY dO PEOPLE sAY YES?
The Psychology of Influence
By Rob McKay
NZsM / JUNE 3rd 2009 / 5
rEciPrOciTY
People are more willing to comply with requests (for
favours, services, information and concessions) from those
who have provided such things first. This is the old ‘give
and take’ scenario – if I do this for you, maybe, in the
future, you will do something for me.
This form of influencing is used in many ways – gifts,
concessions and exclusive information are common tools
of reciprocity. One place you see this tactic used is in
supermarkets; merchandisers offer you free food to taste,
you reciprocate by purchasing. The key concept here is that
when giving make it a gift, not a reward! Your actions must
not be seen as coercion.
cOMMiTMEnT/cOnSiSTEncY
People are more willing to be moved in a particular
direction if they see it as consistent with an existing
commitment. An example of the commitment principle is
used in retail sales – a good salesperson will try to get you
to try something on because once you are committed to
trying, you are closer to buying.
People will very rarely go against their own values and
beliefs. Once a person makes a choice, or takes a stand
they will encounter interpersonal and personal pressures to
behave consistently with what they have previously said or
done. Now you can understand why the power of getting a
small holding deposit from a potential buyer works so well
– they are now committed to moving forward.
AUTHOriTY
People are more willing to follow the directions or
recommendations of a communicator to whom they
attribute relevant authority or expertise. For example,
an expert witness talking in technical terms has more
persuasive powers with juries than a lay eyewitness.
A tactic used a lot in advertising is to have recognised
experts endorse products. Having Dr or PhD linked to
a name adds persuasive power. Dan Carter sells a lot of
men’s underwear to women who are buying on behalf
of men. A double whammy here, Dan has authority and
attractiveness (see below). The biggest symbols of authority
are automobiles, clothes and titles.
SOciAL VALiDATiOn
People are more willing to take a recommended action
if they see evidence that many others, especially similar
others, are taking it. We live in a busy world with no time
to fully validate our decisions, so many times we rely on
what others are doing. If many people are doing it, it must
be right – or is it?
Have you ever noticed how a small group will attract a
crowd and a crowd attracts a mob? If a street performer
can get four or five people to stand and watch, I guarantee
there will be 20 or 30 people there within a minute or two.
If two or three people throw money into the hat, many
other coins will follow – that’s why buskers always seed
their violin case with notes and coins.
Here’s a little test you can perform. When next in a
crowded area with a couple of mates have the three of you
all look up into the sky – I guarantee everybody around
you will start doing the same.
ScArciTY
I love this one; it sucks me in all the time. People find
objects and opportunities more attractive to the degree
that they are scarce, rare, or dwindling in availability. Air
New Zealand’s current ‘grab a seat’ campaign plays on this
scarcity principle. Think about the one-day sale or tickets to
a popular concert/event that last sold out in 30 minutes.
The interesting psychology working here is that people
fear loss more than they want gain. Telling someone they
will lose $1000 a year if they don’t take action is more
powerful than promising they will make a $1000 by taking
action. Another tip, numbers are more powerful than time
as it creates competition.
NZsM / JUNE 3rd 2009 / 6
Rob McKay MA(Hons) CMCT is a Business Psychologist and Director of AssessSystems Aust/NZ Ltd.
Visit his website at www.influenceatwork.co.nz
LiKing/FriEnDSHiP/ATTrAcTiVEnESS
Yes folks, beauty does sell. People prefer to say yes to
those they know, like, find attractive or are similar too.
It’s a proven fact that voters will be more swayed by an
attractive, friendly candidate than policy. I’ll tell you one
thing, there were many election billboards littering out
streets in the recent election campaign that helped people
to vote against a candidate!
Apart from people liking you, people will also be moved
to say yes to your requests if you show them (naturally and
sincerely) that you like them. All of us are suckers for flattery!
MEASUring, PrEDicTing AnD LEArning inFLUEncE
The science of influencing can be learned; however a
person’s ability to influence successfully is heavily driven
by their personality. If they don’t have personality traits
like resilience, optimism and assertiveness, no amount of
training will make a silk purse out of a sow’s ear!
Personality can be measured. Influencing skills can be
taught – you can’t have one without the other. So, if you
are hiring or developing staff that need influencing and
persuading ability (salespeople, outbound call centre
operators, leaders, managers and marketers) it’s important
to ensure they have the innate personality characteristics to
drive this competency.
Assessing them through a valid personality profile will
give you this important information. Then, introducing
them to Cialdini’s six core principles of persuasion will be
analogous to putting a strong sea breeze into their Kevlar
racing sails.
The science of influencing is very powerful. Those who can
understand the theories will be better equipped to generate
change and growth in their businesses. But a word of
caution – your influencing tactics must be ethical; people
who use unethical strategies may win the first round, but
will lose the match.
NZsM / JUNE 3rd 2009 / 8
Why is Selling Still a Dirty Word?
By Paul Newsom
It’s Time to Rewrite the dictionary
I often begin sales workshops by asking the question
“What is selling?” We always end up with several
different definitions, and some better than others in the
context of the business.
Stop reading for a moment and write down your definition
of selling.
Selling can and should mean different things to people
who sell. The definition needs to consider the nature of the
sale. It is interesting to note that the origin of the word sell
is Sellan, the old English word meaning ‘to give’.
A quick dictionary search on Google comes up with the
following definitions:
To exchange or deliver for money or its equivalent•
To persuade (another) to recognise the worth or •
desirability of something
A deception, a hoax•
Sell down the river (betray the trust or faith of)•
NZsM / JUNE 3rd 2009 / 9
Paul Newsom is Learning & Development Manager at the Rev Sales Network. Visit www.rsn.co.nz for more information.
We don’t need to go into three and four, as they’re outside
our meaning of the word in this context. So let’s look at the
first two definitions.
Firstly, exchanging money for goods or services is not selling.
This is the definition of ‘sale’ which is the transactional
outcome of the process of selling.
Secondly, those selling commodity product to repeat buyers
in a competitive market are likely to need good persuasive
skills, but will hopefully not be using persuasion to get
people to buy something they have no need for. The best
persuasive sales people will leave the buyer thinking they
have bought well, rather than been sold to.
In a complex sale however, a strategy of persuasion is
unlikely to result in long-term success. I think of selling
as ‘the process of helping people make quality buying
decisions and developing mutually beneficial and
profitable long-term relationships’.
It is about helping the client succeed, from which you
make sales, rather than persuading people to buy. There is
a big difference.
How well does your definition of selling support the
desired sales culture of your business or organisation?
I generally find that wide variation of opinion on what
selling is within a team will be a good indicator of a
dysfunctional sales culture.
A great exercise is to ask your salespeople, “What is
selling?” If your salespeople cannot present a consistent
answer it’s highly likely that your customers are receiving an
inconsistent buying experience from your company.
In any context, selling is something you do with or for
someone, not something you do to someone.
A great exercise is to ask your salespeople, “What is selling?” If your salespeople cannot present a consistent answer it’s highly likely that your customers are receiving an inconsistent buying experience from your company.
NZsM / JUNE 3rd 2009 / 10
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FRI 3 JULYTHU 2 JULYWED 1 JULYTUE 30 JUNE
MON 29 JUNETHU 25 JUNEWEd 24 JUNE
TUE 23 JUNEMON 22 JUNE
WED 17 JUNETUE 16 JUNEMON 15 JUNEFRI 12 JUNE
FRI 26 JUNE
sUN 28 JUNE
SAT 27 JUNE
sUN 21 JUNE
sAT 20 JUNEFRI 19 JUNETHU 18 JUNE
sUN 14 JUNE
sAT 13 JUNE
SUN 7 JUNE
SAT 6 JUNE
SUN 5 JULY
SAT 4 JULY
NZsMCALENDAR
MON 8 JUNE
THU 4 JUNEWEd 3 JUNE FRI 5 JUNEManaging Difficult CustomersZealmarkAuckland
Key Account ManagementDavid FormanWellington(8-9 June)
Advanced Sales DevelopmentDavid FormanAuckland
THU 11 JUNEWEd 10 JUNETUE 9 JUNERSN Seminar # 3Rev Sales NetworkAucklandAdvanced Sales DevelopmentDavid FormanAucklandCustomer ServiceZealmarkAucklandColdcalling WorkshopTop Achievers sales TrainingAuckland
Sales Skills Level 3EMA NorthernAucklandProspecting David FormanWellingtonAdvanced Serious SellingGeewizChristchurch
sales skills 1ZealmarkAucklandSales Basics SeminarGeewizChristchurchHit The Road Running Sales SeminarTop Achievers sales TrainingAuckland
sales skills 2Zealmark GroupAucklandCustomer ServiceDavid FormanAucklandTelephone sales skillsEMA NorthernAucklandExceeding Customer ExpectationsGeewizWellington
Customer ServiceDavid FormanAucklandSales DevelopmentDavid FormanWellington (15-18 June)Sales DevelopmentDavid FormanAuckland (15-18 June)Networking WorkshopTop Achievers sales TrainingAuckland
Managing Through LeadershipZealmark GroupAucklandsales BasicsGeewizAucklandHit the Road Running Sales SeminarTop Achievers sales TrainingHamilton
Sales ManagementGeewizAuckland
Cold Calling & ProspectingTop Achievers sales TrainingAuckland
Prospecting & New Business DevelopmentDavid FormanAuckland
Sales ManagementDavid FormanWellington
Sales ManagementDavid FormanWellington
Sales ManagementDavid FormanWellington
Sales ManagementDavid FormanWellington
Business NegotiationZealmark GroupAucklandAdvanced Serious SellingGeewizAucklandHit the Road Running Sales SeminarTop Achievers sales TrainingWellington
Do you identify with this scenario?
Two weeks into the month and the CEO walks into your
office looking pensive.
“How was the board meeting?” you ask.
“The chairman wants to know whether we will hit our sales
budget this month. What should I tell her?”
You knew this was coming but foreknowledge doesn’t
change that sinking feeling you experience. Dare you say
“Yes”? Can you bear to say “No”?
“I’d better check around before I answer that,” you respond.
“Get back to me by 10am tomorrow,” says the CEO.
The equation: 15 days to go, MTD sales $200,000, budget
$500,000, sales achievable at the present rate $400,000.
What have your reps got in the pipeline? A quick email
goes out looking for the instant update, and the answers
trickle back. They say they can pull in another $250,000.
$450,000 is not good enough for you to take back to the
boss. You’ll be in the gun.
But do you believe them? What if they are too optimistic?
What if you tell the boss $450,000 and they are just
fudging to buy time? At $400,000 your job is on the line.
How can you find the truth? Can you pull in a couple of
favours from customers? You took Joe fishing last month
and he caught the snapper of a lifetime. He owes you. If
you can talk him into placing that big order this month
for delivery over the next two months, you might just get
away with it.
You know you’re just fudging it yourself and the chances of
getting lucky next month are not good but things are tough
out there. What is the real problem?
If you have ever found yourself in this position, you need a
better answer.
Your problem is that your sales forecasting system does not
look far enough ahead. It does not tell you the truth early
enough for you to act and make a difference.
You need a forecasting system that gives you two months’
notice of a bad month so that you can get your sales team
working on the things that will fill up the bucket.
LET’S THinK ABOUT THE THingS WE KnOW:
Making a sale requires real work; the process has to be
followed, both for you and the customer.
There are quite a few stages in the process, from finding a
prospect, putting together a quote, getting the order and
starting the work. Short cuts don’t work.
Sales teams cherry-pick their prospect lists for the easy sale
and look dumb when they have to chase the harder ones.
Salespeople are over-optimistic at the start, and good at
excuses when it turns to custard.
So can you build a simple sales forecasting system that will
not only let you know in an instant what your team will close
this month, but be alerted to problems months in advance?
The good news is YES. You can solve your problem by treating
every sale as a project in its own right. Then you can track and
measure your progress through the steps to the sale.
Next issue we’ll look at a simple spreadsheet model that
will let you keep track of sales prospects for each territory
or representative, and when you add them together you
can start to manage the work that will deliver the sales. If
things are going in the wrong direction you will get advance
notice and you can help your people manage their activity to
NZsM / NOV 12TH 2008 / 11
SALES FOrEcASTing THE SALES MAnAgErS DiLEMMA!Part 1 of a 3 Part Series By Michael Taplin
T W O M I N U T E T O P - U P
NZsM / JUNE 3rd 2009 / 12
r E s O U r C E C O r N E r
The simple secrets for achieving personal wealth.
Read by millions, this timeless book holds the key to
success – in the secrets of the ancients. Based on the
famous Babylonian principles, it’s been hailed as the
greatest of all inspirational works on the subject of
thrift and financial planning. The simple solution for
a strong financial future.
This celebrated bestseller offers an understanding
of – and a solution to – personal money problems.
This is the original classic that reveals the secrets to
acquiring money, keeping money, and making money
earn more money. Simply put: the original money-
management favorite is still the best!
.
THE ricHEST MAn in BABYLOnBy George S. ClasonPublished by New American Library
$21.16 from
Michael Taplin is a business mentor and strategy consultant with special expertise in sales forecasting. You can visit his website at www.bizlearn.biz.
LET’S THinK ABOUT THE THingS WE KnOW:
Making a sale requires real work; the process has to be
followed, both for you and the customer. There are quite a
few stages in the process, from finding a prospect, putting
together a quote, getting the order and starting the work.
Short cuts don’t work.
Sales teams cherry-pick their prospect lists for the easy sale
and look dumb when they have to chase the harder ones.
Salespeople are over-optimistic at the start, and good at
excuses when it turns to custard.
So can you build a simple sales forecasting system that
will not only let you know in an instant what your team
will close this month, but be alerted to problems months
in advance? The good news is YES. You can solve your
problem by treating every sale as a project in its own
right. Then you can track and measure your progress
through the steps to the sale.
Next issue we’ll look at a simple spreadsheet model that
will let you keep track of sales prospects for each territory
or representative, and when you add them together you can
start to manage the work that will deliver the sales. If things
are going in the wrong direction you will get advance
notice and you can help your people manage their activity
to correct the problem in good time.
It’s not magic; it can be done by any sales manager, and it
works as well as sighting in a rifle helps you hit the bull’s eye.
Next issue: Part Two in our look at sales forecasting – How
to create a simple and accurate forecast for your business.
NZsM / JUNE 3rd 2009 / 14
NZsM / JUNE 3rd 2009 / 15
“
“First you fuel the desire, then the desire will fuel youNapoleon Hill, Author “Think And Grow Rich”
Competing with “E”ase – the new competitive edge for today’s market place
How to create better strategic alliances
Sales Forecasting Part Two: How to create a simple and accurate sales forecast for your business
Plus: We talk to performance development coach Adam Sands about developing sales cultures in large businesses
Plus: Will you be the next NZ Sales Manager Wineplus Winner?
Have you subscribed to New Zealand Sales Manager? It’s free!Simply visit www.nzsalesmanager.co.nz to get a copy of New Zealand Sales Manager delivered
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