Black Sales Journal

When you get out of survival mode, you have a chance to think about how to be successful as you wade through a sea of obstacles.  You will never be remembered unless you can crack the elite.  You have heard about this (Pareto’s Principle) before but now internalize it and …be in the 20%.

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If you are in sales you have most likely heard about the following phrase:

“80% of your production comes from 20% of your sales force”

You may also have heard this phrase:

“20% of your sales activities will generate 80% of your sales results”

I am quite sure that you have heard both of these.  More importantly you should figure out a way to make both of statements work for you.

Before we start examining that, we would like to recognize Vilfredo Pareto (1848 – 1923) of Italy who started this all in 1906.  He used it initially to explain the fact that 80% of the wealth of his country was in the hands of 20% of the population, also known as the rich.  This is called Pareto’s Principle and you may also hear of it as the ’80-20 Rule’.  It is used in everything from sales, to sports, to personal relationships, and of course wealth.

I have found this principal to be correct for the most part and that is why I’d like to take some time to examine it. Stated simply, a small number of are responsible for a large percentage of the effect.  Most examples use a figure of 20 to 80 or 20:80.

It is exact?  Of course not, but it simple and easy to understand that the relationship between what we put in, and what we get out, is not balanced.

Be the Best!

Successful Black sales professionals stand out.  If you are able to perform at a level that makes you a valuable asset to your employer, you are to be commended, as the ‘environmental’ resistance (general economics, racial preference, and racial prejudice) that you encounter is omnipresent.

Being successful is not enough as your objective is to be the best, and that designation does not recognize race.  To be the best, you need to be in the top 20%.  If you are making money that is fine as well, but overall you still need to be in the top 20%.

Strategies to make it there are important.  Remember, whether you are struggling, or currently successful, if you want to change the result, you must change your behavior!

Here are a few activities that will help vault you to the top:

• Become an expert (BSJ 6-27 More on Being an Expert – An Edge for the Black Sales Professional)
• Find prospects through a seminar (BSJ 3-24 – Finding Prospects through a Seminar and BSJ 12-19 – Increase Your Prospect Base)
• Improve and increase your networking (BSJ 2/21- Networking for the Black Sales Professional and BSJ 12-19 Increase Your Prospect Base)
• Ask your best customers for referrals (BSJ 12-10 Increase Your Prospect Base)
• Increase your customer retention (BSJ 5 Random Acts to Lock Down Your Customers)
• Try some new prospecting angles (BSJ 11/28- Tune-Up Your Cold Calling and Phone Etiquette and BSJ 2-10 – 9 Prospecting Tips for the Black Sales Professional.
• Network effectively (BSJ 2-21- Networking for the Black Sales Professional)

Read them and select one or two (or several) and give them a try.

Increase your Effectiveness

The second phrase at the beginning of this document illustrates the 80:20 rule of the Pareto Principle by indicating as stated earlier that what we put into something might not be what we eventually get out.  Put primary priority on the items that increase your effectiveness. Recognize that your efforts need to favor those activities that “make a significant difference”.

Author and self-effectiveness guru Steven Covey urges us to “Put first things first”.  Indicating that you should undertake your activities on the basis of importance rather than urgency.

This would mean that you would spend working hours doing some of your important prospecting, and move your expense account (something I was terrible at) preparation to the evening.  It would mean that you would spend valuable time doing customer problem solving first, relationship building next, then the various and sundry activities that are urgent, but not important.

Below I’ve listed some good suggestions with links to past BSJ posts that will make a difference in moving into or staying in the 20%.

• Be Responsive! (BSJ 1-16 – Responsiveness – The Objective of the Sales Professional)
• Know your compensation system (BSJ  11-16 Know How You Get Paid – Its About That Paper)
• Plan Effectively- Construct a Good Sales Plan (BSJ 11-10 – Solidify Your Sales Plan)
• Communicate and listen effectively (BSJ 11/7 – Make Communications a Strength and BSJ 4-14- Are You Listening to Your Customers?)
• Deepening Customer Relationships (BSJ 1/11 – Deepening Customer Relationships Revisited
• Be your customer’s consultant (BSJ 6/6 – Consultative Selling- An Asset for the Black Sales Professional)
• Be your customer’s expert (BSJ 6/27, More on Being an Expert)

There is a lot of information here, yet the most important part of the process is to recognize the importance of changing something.  If you want to change the results, you must change your behavior.  Remember, ‘you can lie about the numbers, but the numbers don’t lie.’

For 2012 change something! Be the best, and always be effective!

Unless you are extraordinary, you only write a fraction of the accounts you propose or quote.  So what we talk about to day is very important.  If you work on a number of prospects, you probably will not remember details to all of them as well. A solid, well done, post-mortem will help you more than you would ever believe.

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You just completed one of your most important sales calls of 2011. Your team did well, your pricing was close, but you just got a call indicating that you did not get the order. You’re aware of many of the reasons, and know that this account can be a good prospect for the future.

Which of the following is the most important activity you can take next:

a. Close the file and diary this file for next year.

b. Call for a meeting with your manager to advise him why you didn’t get the account

c. Write a quick but comprehensive postmortem detailing what went right, and what went wrong, and how you are going to go about getting the business next year.

And the answer is:

In reality the correct answer is C for at least two reasons. Nothing could be more solid in preparation for getting the business the following year than to record why you didn’t get it this year, as well as what went right and wrong, and how you will remedy these problems in the following year. It doesn’t take long to do and it will create lasting benefits.

Once complete, this is what you will use as the outline to review the account with your manager detailing all of the issues, and your plans for next year.  Additionally, once you do it a few times you will find that it is much better than committing facts to memory. As a matter of fact once it is part of your routine you will be able to free your mind following this activity because your pre-work will be done for the next encounter with this customer.

I Don’t Want to Put Anyone on the Spot!

When sales call goes wrong too many sales professionals are afraid to cite the issues with their team and support. By the same token, too many sales professionals are too lazy to give accolades to those people who did an outstanding job. The objective of a successful postmortem is to deliver a framework to do both these things in a constructive way. It allows you to point out problems with coordination, completeness, quality work, and other issues in order to begin the process of strengthening those areas. If your organization neglects to change anything, you can logically expect the negative result to occur again. These are definitely learning opportunities that your manager, and very possibly the manager’s of the other individuals on your team need to know about.

When one of your team members has exceeded what is expected, the postmortem gives credit where it is due.  Don’t forget to do it. In reality, even though everyone might be doing their job, there is no doubt that these individuals will be stimulated by a show of “job well done”.

If done correctly the postmortem is a perfunctory way to naturally include improvements and accolades in the same document. It’s also a constructive recording of what we need to do better and what we have done well in regard to a particular account. In regard to the account itself, with this information recorded well, you have the basis for the introductory discussions for the next period when you attempt to wrest the business the incumbent.

By doing a postmortem correctly you will avoid the common problem of forgetting to give a compliment and for getting to help correct the most important issues.

But I’ve Already Got Enough to Do!

In the busiest of times a successful sales professional is overloaded. No one in his or her right mind wants to do valueless work.  This is real value.

To be able to record updates on the preferences of the buyer, differences in pricing, weak points and strengths in your product line, as well as performance of your sales team is priceless. When the next encounter comes about, you are ready to utilize the information gleaned from the postmortem to set your sights on success.

Depending on the nature of what you sell, and the type of organization you work for, you could be in a situation where you give important constructive points upfront to those that are providing your numbers and product particulars.  These notes can make a difference, and can change how people perceive you.

A Practical Example

Once while running a divisional operation I asked to see the sales representative about an upcoming key account.  She came in with some back-up documents and blew me away with her grasp of the account particulars as well as what she perceived that we needed to get the business on the books.

Not only did she have a grasp because of her postmortem (which happened long before I was in the position) she spoke clearly and cogently about the problems that we had with our product line as well as our foibles during the presentation.  Needless to say, she was “on top of it”.

I was impressed with this sales professional, and it left a lasting impression on me.  A professional does not sit in a meeting with a responsibility to be the expert on the account and then speak tentatively.  The true professional expounds on the facts of the call, citing what he or she believes we can solve, and what we need to sell against.

Always be ‘The Professional’.

I welcome your comments.