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!

Sales is a tough but rewarding career.  It pays extremely well if you are with the right firm, and when you get it going well, you will always have a group of skills that you can call upon to increase your performance, and your income.

Not only is sales a tough career, it is one where opinions and impressions of others can rocket you to success, or make it more difficult. Much of this is because perceptions and trust are so important.

I would like to show how building a perception could boost your sales career.  This is not smoke and mirrors, it is real.

Build A Perception

At a point in my sales career I decided to specialize in transportation and trucking.  I am going to indicate how the three major constituents (customers, coworkers, and managers) can positively affect you career by using a couple of examples of situations that happened to me.  I think you will agree that even though the wind blows both ways, good and bad, having people believe in you is a game changer.

I realized early on that I needed a “hook” in my career as there were so many different individuals that a customer could buy commercial lines insurance coverage from.  How was I going to be any different?  It was a plus that I sold for a reputable company that had a national advertising campaign.  The rest was up to me.

Your “hook” will be based on finding a niche, underserved segment, or category that you can build a constituency in.  Let me go on describing my situation and you will see what I mean.

I made a decision that I needed to “specialize” in something because being a “jack of all trades” was not working too well.  I needed to save my career by specializing, and needed something that would result in near immediate results.  I chose selling insurance to medium to large trucking firms because they would listen.  Remember, I believe in being an expert, and you might want to refresh yourself by reading BSJ – Your Customer Needs an Expert .

What Does Your Customer Believe?

The most important thing that I did was to study the industry, the terminology, and the buying habits.  At the point that I think I knew what the customer wanted, I began to say, “I specialize in trucking business”.  When I said this to my first customer, he asked me some rather in-depth questions about the business that I answered well, and he said that he would give me a chance.  I had passed the first test.

Following this, I researched his business and made a host of suggestions as to things that he should do to make changes.  He shot down every one of them except one.  But… he realized that I did understand his business, and maybe just did not understand his operation well enough.  When I sold his account, he said to me that he was so very concerned that he aligns himself with someone who was working with his business for the long term.  I think he was saying that he needed an expert!

This customer then referred customers to me, and me to customers, and were loyal to me during my sales and sales management career.  Darn it, if the customer said I was an expert, I was an expert!

What Do Your Coworkers Perceive?

Coworkers can help you to build a business persona as well.  They have the ability to tear you down as well.  The more you learn the more you can assist them in learning, so it is important to recognize that when you get the knowledge you will gain more by sharing than by not sharing.

They will sing your praises to others regarding your expertise and will refer others with questions to you.  In situations where there are new technologies or processes, you will be the ‘de facto’ expert and gain ‘expert power’ from this.  The people that you work with will ‘need’ you, and the perception of your skills might even be stronger than the skills themselves.

You might be saying that none of this puts money in your pocket, but I want you to recognize that it increases your credibility.  Giving you a power that you cannot claim without others ‘perceiving’ you in a certain way.

It was always said that if you see three people in the morning and they say you look sick or ailing, you might want to go lie down. Well…if your coworkers proclaim you are an expert, and you customers consider you an expert….

Does Your Manager Believes In You?

Your manager is bright and  astute enough to be the  leader of your unit, but even this individual must yield to the fact that customers and your coworkers see you as a force to be listened to.  The manager is concerned with results, not just yours, but results for the sales unit.  It is a difficult to manage a band of sales professionals, and any help by having resources within the unit is welcome.

If your manager believes in you, this individual may give you more latitude with this type of business.  Sending call-in prospects or giving orphaned accounts in your field of specialty is an excellent way to recognize your abilities.  Your ability to retain, or convert these to sales gives you one more feather in your cap.

Remember that this individual is the key to increased compensation in many firms, as well as improvements in territories, resources, and support.

You have the ability to shape the perceptions others have of you, and it is time to start doing it.  Always remember that relationships help you win, and the professional who has the best relationships will win in the end.

Your comments are appreciated.