It has to be said, I am sorry, but it does have to be said.
Brexit has made a difference and will make further differences to business.
Things are changing and there are more changes to come.
But, I am not one of the doom-mongers as I believe it offers us interesting and useful opportunities. I say ‘offers’ as it is up to us whether we take those opportunities or sit back and just hope.
Whatever happens there will be change, and we need to be prepared as best we can. But prepared for what? I believe there are four indisputable facts:
- Brexit will happen!
- Markets will change
- There will be greater focus on domestic markets
- We will find ourselves competing with more UK companies as larger providers seek to replace off-shore business.
This is what happened to Salient in the last 18 months:
- Five larger prospects, (£1M turnover+), were reasonably secure in my sales pipeline.
- As the Brexit vote loomed, happened, and shocked the markets, these five companies retreated, not wishing to ‘spend money when the market was so unpredictable.’
- My cash-flow forecast dropped considerably!
- I initiated my contingency, my Plan B, and targeted the smaller businesses that tend to ‘get on with it’ no matter what the market is doing.
- I had to replace one large opportunity with ten smaller ones.
- It was successful, and I have now progressed to Plan C where I develop the new smaller company market, while attracting new larger opportunities.
But what of the larger companies? What will they do in this Brexit uncertainty?
I believe they will do very much as I did and look to smaller domestic markets to fill the gap in their turnover.
In other words, those who rely on domestic markets for the majority of their turnover will start to find more competition from larger suppliers.
There is another side to this. Those seeking your products or services are less likely to look off-shore for suppliers as these are likely to become more costly. Therefore, they will actively seek domestic suppliers. It could be you, if you are ready! Another point is that if they previously sourced from larger companies, they are likely to spend more than your present customers.
To summarise, this could mean for your business:
- New domestic markets are likely to open up
- Competition will increase for home-grown opportunities.
- The new opportunities have different expectations and spending levels
Are you ready?
Is your sales team and/or your sales process the best it can be?
Your sales effort needs to be at its best; sharp; focussed; forward-thinking.
Don’t miss the boat.
If you fail to address this, others will get there first and will win the lion’s share of the new opportunities.
If you are successful in this, your business growth could be double what you would anticipate for 2018.
If you would like to discuss your experiences of this, please be in touch; call or email Andy
Sales Conversion Rates? Take the primary conversion rate: the ratio of the number of contacts you have to make and the number of business opportunities won from these contacts, e.g. you may have a primary rate of 1 new opportunity won from having made 20 new contacts. Such rates can be applied to the whole sales process. Three key rates are given in the example below.
If you do know your rates, that’s great, but what do you do with them? Do you apply them to your prospecting activities, your marketing, your pitching, negotiating and closing? If you can do anything to increase your conversion rate even slightly, how much difference would that make to your success and income?
If you don’t know your conversion rates, how can you know if what you are doing is really effective, or mostly a waste of time? How can you set targets that are realistic and achievable? How do you decide what works and what doesn’t?
Take this example:
A company has worked out that it needs another £120K of business over the next 12 months; apply your own figures, this applies to any size of business.
How many new opportunities need to be identified to achieve this figure? If you don’t know your conversion rates, you will have to guess. So, let’s assume conversion rates are known.
We know that the average spend of our customers is around £5K, so, straight away we can say that we need to find 24 new business opportunities.
Conversion rate 1: How many quotes or proposals result in an order? Say 1 in 2.
- So we need to have given (2×24) 48 quotes to have the chance of winning 24 new orders, resulting in £120K of new business.
Conversion rate 2: How many meetings result in a request for a quote? Say 1 in 3.
- So we need to have had (3×48) 144 meetings to have the chance of receiving 48 requests, …….resulting in £120K of new business.
Conversion rate 3: How many contacts made will result in an agreement to meet? Say 1 in 5.
- So we need to have contacted (5×144) 720 people/businesses to have the chance of agreeing 144 meetings…….resulting in £120K of new business.
This is, of course, the classic ‘Sales Funnel’ approach. Do you see how it works? With just three known conversion rates, you can work out how you might achieve your target. In this case you will need to contact in the region of 720 prospects in order to achieve your contacts. If you are just one person operating in sales this could be a problem! If there are a team of you; say five sales people, then we are back to 144 meetings each which need only be 2 or 3 per day.
However, it should be remembered that a sales person’s life is not just calling and then meeting customers. There is planning and preparation, prospecting and analysis of the list of targets. Then there is pitching outside of the meeting and writing the quote or proposal. Some negotiation is bound to be needed and there are many skills in closing. Beyond that there is the client management and development needed to retain and grow the customer loyalty and ‘spend’. With a team of 10 in sales, the overall targets will, of course, be proportionally higher.
This is just a quick demonstration of how knowledge of your conversion rates will help you to plan, devise strategies and manage your resources to make sure your targets can be met in the right time frame.
There are a number of key techniques for improving these conversion rates which will help you to hit targets or even exceed them. For instance, what would it mean if you improved conversion rate 2 from 1 in 3 to 1 in 2, i.e. if you were better at pitching and matching the need? Or, what difference would it make if you improved conversion rate 3 from 1 in 5 to 1 in 3, i.e. if you were better at making contact and making good first impressions? Believe me, it would be significant! If you would like to hear more about these techniques for improving conversion rates and how to apply them to your business, please contact Andy at Salient.
– with thanks to David Joel of Lanson Consultants for his inspiration.
I am happily married with four lovely daughters.
I think any involved parent is a CEO.
I am an equal partner CEO in the parent company. Two of our branches believed they would be more successful away from the control of the parent company and so we have come to a mutual agreement to separate. The longest established branch has formed a successful joint venture by merging with another to form a separate company, and the other branch has changed markets and moved to develop within a larger concern in London.
– This has resulted in reduced costs and improved productivity of the parent company and day-to-day running is noticeably less frenetic.
The remaining two branches are still being developed and have interesting prospects for the future. They have each developed in very different ways addressing widely differing markets; one in entertainment and the other in service industries. Once each has reached fully profitable status and is attractive enough for a (hopefully) more established concern to take notice, then these too will likely separate from the parent company as ‘going concerns’. Some support will have to be maintained during the transition phase at least, and possibly longer. I envisage maintaining a non-portfolio directorship for some time but doubt my influence will be considered valuable by then.
– The timescale for these changes is difficult to determine. We are hoping for 5-6 years but suspect it may be considerably longer.
Once the parent company has been ‘asset stripped’ in this way, we hope it will remain a viable concern, able to tick-over at least for a few years. Returning to full efficiency and optimum profitability may take some time but once achieved then a more bespoke, higher level, occasional consultancy may be the structure adopted.
As for passing the company on to future generations…..
I hope this analogy resonated with some of you.
Finally, a question to ask yourself; am I being a good CEO or am I simply ‘doing a job’?
©Salient Sales & Training
5 TOP TIPS: Making contact with new prospects
Many people find contacting the most difficult of all sales activities. This is likely if we are ‘cold-calling’, but if we have manageable list (not so large that we cannot follow-up all the contacts made), and we have a few useful techniques for winning their attention and gaining their interest, then we stand a good chance of doing business with them.
Here are 5 tips designed to help achieve good and profitable contacts every time:
1/ Make sure your prospecting has been effective and you have identified those who will be most likely to understand why you have contacted them; what you are offering and will have an interest in hearing more from you.
2/ Try and identify the Decision Maker before you make contact, or at least a named employee. Asking by title may well draw a blank, whereas receptionists or ‘gatekeepers’ are likely to respond positively if you can use a name.
3/ Make friends with the Gatekeeper. They are not interested in fulfilling your need so simply ask for their help. Many will deny an approach; ‘I need to talk with…’ whereas few will deny a plea for help.
4/ Apply ‘AIDA’ to the conversation (if this is not familiar email or call and I’ll explain!).
5/ Try to emphasize the benefits of your product or service which are relevant to the role of the contact; a buyer will be interested in price and delivery, whereas an MD (or FD) will be more focussed on return-on-investment and cost-effectiveness.
These are just a few tips; there are many more tips and techniques you can use to great effect. If you would like to discuss these or learn more, please call or email.
5 TOP TIPS: Feeding the sales pipeline.
To avoid ‘stop and start’, ‘feast and famine’ sales, where an unplanned approach to marketing fails to attract a continuous stream of prospects or enquiries, here are 5 tips designed to help achieve sales continuity and a steady flow of new business:
1/ Construct a powerful message that really catches the eye and creates interest. Include special offers, guarantees, value statements, new testimonials etc.
2/ Devise marketing initiatives that work in parallel, not in series, i.e. have more than one promotion operating at the same time. These could involve a newsletter, LinkedIn, flyer campaign, website ‘latest news’, networking etc.
3/ Link all the initiatives together, signposting from one to the other to reinforce the message and provide extra detail.
4/ Include a system for registering interest; on your website, return form, newsletter feed etc.
5/ Follow-up ALL contacts received, however minor the interest claimed, and try and obtain feedback as to which promotion initiative caught their attention (useful for future campaigns).
This is ‘joined-up’ marketing and, well constructed, can be far more effective at attracting new business.
This is the first of 8 in our ‘5 TOP TIPS’ series. These will be followed by:
Contacting – first impressions that count
Presenting or ‘pitching’ – building interest and credibility
Negotiation – the best deal for all
Closing – introducing the Salient Ultimate Close
Customer Care – developing loyalty
More Time – practical techniques in time management
Smart Networking – making the most of face-to-face contact
As many of you know, I am dead against ‘pressure selling’. There is no need for it.
It is counter-productive in that you may win the order, but you won’t win their loyalty, their referrals, or their repeat business, and pressure-selling probably makes them a bit cross!
It gives Sales a bad name. I still come across people who are are at least suspicious of sales and sometimes even anti-sales.
To counter this, I used to promote a more hand-holding approach to sales that generated more respect and credibility. it was more successful, but it was not infallible. One reason for this was the ‘fence-sitters’. We have all met them; they are those who know they need what you have to offer, but still dither and appear afraid of investing in their own business.
I now promote what I call ‘Challenging Sales’; nothing like pressure sales, but not totally customer-hugging either. It offers a diplomatic challenge to prospective customers that can wipe out all their objections.
This is still ethical selling, but it uses techniques in ethical influencing to ensure the best rate of sales conversion.
If you want to know how this can work for you, go-on, don’t sit on the fence; I challenge you to talk to Salient!