Strategic Direction Blog

It is hard to believe that some managers today still believe the best and only way to motivate the sales team is by paying higher commissions. Although most sales people are money driven many will tell you it becomes boring and rather routine. In addition, cash payouts typically get lost in the monthly commission checks thus unappreciated.

How about an outside the box approach next time you want to motivate the team? Create a theme that incorporates the goal or objective of the program. Update the team results regularly and commend outstanding performance. Reward individuals, rookies or teams monthly, quraterly or annually. Don’t forget to include others outside of the sales team to create a cohesive “team” approach.

Lastly don’t think you need to do this alone or break the bank. We have done some great programs for organizations that have cost less than half of what a typical commission based payout would cost. That’s espeically important in today’s environment.

When’s the last time you’ve implimented a creative incentive program? Don’t wait any longer - Q2 is coming..no better time to start than the present!

The best time to ask a customer for a “referral” is shortly after the purchase or installation. Why? According to our recent survey, this is typically when product satisfaction is at its highest. Make sure if you do get a referral you ask the customer for a warm hand-off. Ask them to make a phone call for you in order to set the stage for your presentation however if that’s not possible a well written email will suffice. If your customer can’t think of a referral at that moment in time, don’t give up. Keep pressing - sooner or later you’ll get a name.

Remember though, not all customers will provide good referrals - try to avoid:

1. Customers who have been difficult through the sales and negotiating process. Remember, like attracts like.

2. Customers who received a deeper than normal discount or special pricing.

3. Customers who have less than a stellar reputation in the professional community.

And if you get a good referral from a customer, thank them by doing something nice for them then ask for another name!

By the way - every company should have a formal referral program in place. Be creative and make it part of your culture.

Top Sales Professionals never rely on marketing for lead generation. Over the years I have seen and done some creative things to generate quality leads including sending out “birth announcements” to local prospects announcing the launch (birth) of a new product. This not only got a chuckle or two but it moved clients to pick up the phone and call. The best leads (and by best I mean most qualified) come from existing clients/customers. There are some great advantages to referral selling:

1. The leads are/should be pre-qualified

2. Pricing is known and fixed

3. Potentially shorter sales cycle

4. If a demonstration is typical this may get you around it citing the customer as proof of the product’s performance.

The key to successful selling using referrals comes from proper planning..

Coming Soon - Part 2