Why Lead Scoring Will Make You Money

I hear this from clients all the time: "Why do I have to make sales even MORE complicated? I don't need to add lead scoring." Well, you don't need to make sales more complicated, and you DO need to add lead scoring. Here's why.

Lead scoring is a simple system to make your pipeline value visible to the rest of the sales team. I'm a fan of writing 3 or 4 simple scoring lines like When Is The Lead Planning to Make a Purchase (the sooner, the higher the number,) What Is The Budget For The Purchase (the higher the better,) What Is The Interest Level of the Lead (are they contacting you or are you reaching out,) and the like. Ideally, each of these lines will score 1-3 points. The higher the score, the better.

Now, how were those high-scoring leads sourced? Who on the team has the most high scores? Does that correlate to their closing ratio? Should more of the team start sourcing leads in the ways the high-scoring leads are sourced? The answers to these questions will streamline your lead generation, saving time and money, while increasing your closing ratio.

Channeling the Ginsu Knives commercials, I have to say, "And that's not all!" Are your best closers assigned to the high-scoring leads? Or are they your best closers because they close everybody, no matter the score? Why would you give your worst closer your best leads? You can learn a lot about your sales rep's strengths and weaknesses by ranking their leads and seeing if they close. Now you know where to direct your coaching with those individual reps.

"But wait! There's more!" If the scores and the pipeline are public, you have more choices in how to manage your time. Is a rep out sick, and they have a high-score appointment on the board? Does a poor closer have time for a ride along or two with a strong closer? Is Joe a weak closer because he only sources low-scoring leads? You can allocate the team's time in ways that will ensure the high-scoring leads are never left hanging, and can be used as teaching opportunities. And you can learn more about each rep's lead gen process.

And lastly, have your reps defend their scoring. If it isn't challenged, they may just tell you what you want to hear. And when the whole team can see how many high-scoring leads are generated by others, they will compete for that number, too. Nobody likes to see themselves at the bottom of any ranking more than occasionally, so that problem is now solving itself, without much management intervention.

Rome wasn't built in a day, and this won't be either. Add one scoring metric a week until you have the metrics in place that make sense for your business. Don't ask your reps to track too many factors, or it will become a burden. Aim for 3-5, and hold them accountable. And watch your bottom line change!

Elisabeth Marino is an sales process adviser working in Buffalo, NY, and a frequent contributor to LinkedIn. She has worked in sales development and evaluation for 17 years, and helped dozens of organizations improve their sales numbers. Connect with and follow her here, visit her website: www.marinoconsultants.com, on Facebook as Sales Dynamo Consulting, and follow her on Twitter @SalesDynamoNY.

In With a Plan, Out With a Sale

I'd like to say this once and for all - Luck is not a business plan! "Talent" is not a business plan! Whew! I needed to get that off my chest.

I work with small to medium sized businesses, and sometimes really large ones, and I'm amazed at the number of times I hear that there is no skills review or specific process for the sales team to follow. Entrepreneurs hiring sales reps tell me, "they should know what they're doing." Um, yeah, but so should you. Luck is not reliable and repeatable, and without a reliable revenue stream, you're out of business.

Most people who start a business are not sales experts, just like I'm not an automotive expert. But your sales reps should be. They should be going into every sales call with a plan that helps them qualify the customer, and present that customer with the right product to fill their needs. If your reps don't do that, every sale they make is based on luck, intuition, or personality. Not good.

Every sales call should have the same purpose: lead to a sale. The sales cycle for each business is different; selling cars is different from selling medical equipment. Each one will have a different call plan. What are the necessary steps for a prospect to go from zero to sold? All of them are part of your sales process. What needs to happen in person? Those are the parts of a sales call plan. Every sales rep should be using every part of the sales process. If they aren't, they're not doing their job. They should be able to discuss it with you, and they should be able to fine-tune and improve it over time. That way, they can share best practices between them, and all improve steadily.

While we're at it, let's stop selling like it's 1995. There is nothing your customer can't learn or find on the internet. They can probably buy it cheaper, too. That means you need to be there, where your customer is doing their homework. Have some solid online support for your business and your reps. Have a great website, and include a FAQ page. Do some inbound marketing, with social media (anything retail), white papers (business and professional services, technology), a blog (food, fitness, arts, in-home services) or newsletters, all linked directly to your website. People don't buy from businesses. People buy from people. Create a web presence that helps your customer learn your business's personality, and help them know, like and trust what your business will provide.

So, to recap: have solid web presence to help your clients learn about, know, like and trust your business. Sales reps should have a specific set of skills and a plan to learn to "right size" the solution they offer your client. Your company should have a clear, repeatable sales process that evolves over time based on the successes of your sales pros. And you can't rely on talent or luck to provide a steady revenue stream. You need a plan.

Elisabeth Marino is an sales process adviser working in Buffalo, NY, and a frequent contributor to LinkedIn. She has worked in sales development and evaluation for 17 years, and helped dozens of organizations improve their sales numbers. Connect with and follow her here, on Facebook as Sales Dynamo Consulting, and follow her on Twitter @SalesDynamoNY.

Why Closing Is Different In 2015

In 2005, everyone had computer access and a cell phone.  None of us had streaming TV, Twitter, Instagram, Vine, Facebook, or Skype.  Faxing was still big. Important information still regularly came in your physical mailbox. 2015 is a year where the 2005 plan just won't cut it.

The biggest difference in the sales world is that prospect and buyers expect to be part of the sales process. Interactive sales are the norm. Clients will want custom products, and they will tell you how they are willing to let you sell it.  Anyone can open their phone and Google your "facts," and comparison shopping is almost instantly available to every customer.  What's a sales pro to do?

Interacting with your client doesn't just mean showing up for a meeting anymore. Now we text, tweet, video chat, email, and LinkedIn message our customers and our prospects.  Following a prospect on social media keeps us in the loop as their attitudes and goals change and evolve. And they follow us, and our competition, too. The sheer volume of available information has made consumers a much more educated group.

How does this affect closing? Focus on helping your prospect meet their goals and relieve their pain points. Listen as much as possible to how your solution will be implemented and how it will benefit the customer's plans. People commit to relationships they believe are honest and beneficial, so it's important that your client doesn't feel sandbagged in the closing process. (After the commitment has been made is not the time to throw in, "Oh, by the way, I need you to sign this.")

Written agreements give you the authorization to handle sensitive information, and give the customer a record of the commitments you and your company have made. Emphasize that your agreement protects your client's privacy; it limits who has access to their information, and for what purpose. When a prospect asks you for a commitment, that's a great time to agree, hold up your agreement and say, "and we put it in writing." 

Don't be surprised if your client pulls out an agreement of their own for you to sign on behalf of your company.  More and more purchasing departments in companies small and large have "contractor agreements," which usually supersede any other oral or written agreements.  They often include non-disclosure clauses, and penalties to the vendor if the solution is late, ineffective, or improperly maintained. Make sure you have permission to sign before you go ahead and do it.  If you're not sure, bring it back to the office with you and hand it off to your boss.  

Your competition isn't local anymore.  Your competition is anything a customer can find on the internet.  If someone else out there offers a nuance or policy that your customers like or want, they will pressure you to offer it, too.  Welcome to the interactive sale.

Don't Grow Too Fast! It's Deadly

You want your business to grow. Are you ready? Can you handle an immediate 10% increase in business, and short-term growth in the 20-25% range? If the answer is "no," you have growth management preparation to do.

Most companies would answer, "Of course! Too much business is not the problem. We need more business!" Unfortunately, as often as not, the company isn't ready. This can be lethal to any business.

Look at your current supply line. Add 10% to the number of unfilled orders for every day for the next month. Can your current staff, equipment, and standard timeline absorb that change without causing any disruption? For the second month going forward, bring the additional orders to 13% above current numbers. How does it look? Do you have enough staff? Is your equipment in shape to handle the additional demand? Where is the breaking point? 20%? 30%? You need to know. You don't want to get there by surprise.

Lucy and Ethel have a delicious problem!

Frequently, companies try to handle the growth in business without increasing their staff or capital costs. Big mistake. More output always costs more money, whether in the short term by paying staff overtime and bonuses, or in the long term by replacing frustrated and valuable long term employees.

When an organization grows rapidly, two things tend to suffer - quality, and morale. Infrastructure breaks down under the additional load. Machines overheat. Computers crash. Files are lost. Deadlines are missed. Overtime hours are ordered. Pressure builds. Newer employees don't perform as efficiently or as loyally as long-term employees; it takes time to bring them up to speed and proficiency. Existing employees are suddenly responsible for substantially larger workloads with no increase in their paycheck. New employees frequently interrupt the existing staff looking for help and guidance. Existing employees become tired and discouraged, and quality and morale are in trouble.

Clients notice the late deliveries, quality control issues, and declining customer service. They are frustrated that quality is fading. And like all bad news, it travels fast. Reputation and market share begin to falter. Rebuilding a reputation in an industry or community is a very, very slow process. Many companies don't make it. (Think Target in Canada.)

In a period of growth, it is important to have a growth plan. Do you need to institute a temporary formalized training program to bring new employees up to speed? Is it time to tune-up or overhaul your machinery? Are your computers due to be updated or replaced? Does new machinery mean you need more existing workforce training?

Growth is great. It often comes as a surprise as a competitor pulls out of the market, or a new ad campaign is unusually successful. As soon as you notice the upswing, it's time to build morale and loyalty. Buy the staff lunch a few times a month. Make sure everyone has the best quality, most functional equipment necessary to perform their job. The best performance from your employees comes when they feel important and respected. A couple of overtime hours isn't a reward to most employees. Relate to them as people. You've hired them to do a job, and to do it well. Give them the right physical and psychological tools.