Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts

Thursday, 2 August 2012

Dea(r)th of a Salesman, Part 1.


(With apologies to Arthur Miller)

Far too often we hear the complaint, “I can't find enough good salespeople anymore.” I don't think salesmen are too hard to find, just hard to develop and keep because of prevailing business attitudes.

I like salespeople. I like them because they use their smarts, personality, drive, and initiative everyday in an extremely difficult environment. I like them because they persevere under very trying conditions. I like them because they enjoy being with other people. (Further, I like them because I am one!)

But they have become the most under-appreciated, misunderstood, and scapegoated employees in business today. I have two peeves about the way businesses treat their sales staff:
  • Sales training has become almost non-existent , to the detriment of both the sale staff and the business. (The topic of this post.)
  • Commission programs have become a poor and ineffective substitute for Sales Management. (Next week's installment.)
Why everyone benefits from sales training, and why it has disappeared.

The best known and most profitable companies in the past always had great sales organizations. (Think IBM and General Motors.) The activities of the sales department were the public face of the company, and a key differentiator between organizations. Successful companies put a lot of emphasis on sales training, to ensure the job was being done right, done differently than the competition, and done in a way to enhance the company image.

This approach worked well. Salespeople learned all about the product, and what the customers were looking for. They learned how the company's products helped the customers in their everyday life, and how they were superior to the competition. They also learned how the company expected to be represented to the buying public. That's the kind of training that makes salespeople and companies great.

Somewhere along the way, this concept got lost in the desire to hold down costs. The reasons given to justify reducing training efforts are:

  • With high sales staff turnover, whatever training you do will just benefit the next company (competitor?) that hires them.
  • If you hire salesmen from the industry, sales training is not needed.
  • If you hire great sales staff, they will resent you trying to tell them how to do their job.

The answer to all of the above is three simple words. Ba. Lo. Ney.

The current issue of the Harvard Business Review has a great article on sales staff turnover, and a key element is the lack of training, mentoring and career development. So, if your turnover seems too high, INCREASE training, don't cut it back. Good salespeople want to be appreciated, and want you to show that by investing in them.

Another fallacy is that if you hire from withing the industry, more training isn't required. This logic only holds if your competitors do a great job of training. Yet, as the above paragraph states, if they were doing a great job of training, they probably wouldn't be losing their good salespeople to you. Further, sales training gives your staff the tools they need to differentiate your company from the competition. And that is something only YOU can do.

Finally, good salesmen are looking for leadership, and the training you offer is part of that leadership. Show them what you want done, why you want it done that way, and how it will benefit both them and the company. Good people will appreciate your efforts and your commitment to them.


So, What is the real reason behind this Lack of Training?

I think, often, small business senior management has become remote from both their customers and the selling process. They have completely delegated the selling function to others, and are too removed from the activity to feel comfortable in the training role. They use the excuses given above, and abdicate their responsibilities.

Everyone suffers. The Business. The Boss. The Salespeople. The Customers.

Practical Tip of the Day:

Option #1: Spend some time on the road with your salespeople. Find out how they spend their time, and what their accounts are saying. Firsthand. Look for patterns that training could improve.

Option #2: Look for some “Best Practices” opportunities. What are your best people doing that the rest of the staff could benefit from learning? The top people will appreciate the attention, and the learners will appreciate the advice.

Next Post: Counter-Productive Sales Compensation Plans.

Thursday, 21 June 2012

Recent Advertising Stories that Caught my Interest





Two recent stories from the world of advertising caught my eye, and led to some questions which I will share with you.

1.) GM vs Facebook

Facebook has gotten a lot of press lately for its IPO and the aftermath. However, the Facebook story that interested me most occurred a few days prior to the IPO. According to the Wall Street Journal, General Motors will stop advertising on Facebook, after deciding that paid ads on the site have little impact on consumers' car purchases. They will maintain their Facebook pages and will continue working with other social media, but will discontinue its $10 million advertising buy.

Admittedly, this is pretty small potatoes in GM's overall advertising budget, but it may say something about using social media for commercial purposes. Obviously, with 800+ million users worldwide, and over 50% of North Americans using the service, those GM ads were getting a lot of views.

However, this large number of views didn't seem to be getting results for GM. In fact, I read recently that less than 5% of social media users regularly depend on those sites for purchasing recommendations.

Three things may be at play here:
  • Type of Product – social media users may be more likely to respond to the opinions of the crowd, or their friends, when the risk is low. If you go to a new restaurant that has a lot of social hype and then find you are disappointed, your loss is pretty minimal. If, however, you buy a car that you end up not liking, the costs are obviously much higher.

  • Age Group Attitudes – heavy social media users are likely to be under 30, which may not be the prime target for purchasing high-profit new cars.

  •  Level of Engagement – After the GM announcement, Ford stated that they were pleased with the response to their Facebook ads, and were continuing their investment. Ford may have a more creative approach to its social media ads and a more comprehensive engagement process after you hit the Like button.
While its not precisely clear what's going on here, it is obvious that there will be a steep learning curve for most businesses before they turn social media into an effective marketing vehicle.


2.) Harry's Law vs the Tyranny of the Ratings

I have been a faithful viewer of Harry's Law (NBC) over its first, and last, two seasons. First on Wednesday nights, and then on Sunday, this was my “must see” show of the evening. Set in Cincinnati, the show starred Kathy Bates as lawyer Harriet Korn, and Christopher McDonald as the over-the-top Fieger-esque Tommy Jefferson. The show had great characters, solid scripts, and unique plot twists. It also got canceled after two seasons, even with decent ratings.

Yes, Harry's Law had decent overall ratings (rather unique for NBC), but it got canceled anyway. Why? Here's a quote from the TV By The Numbers website:

“Will the Harry's Law cancellation convince the doubters that total viewership is completely meaningless in broadcast primetime? A network's top total viewership show (but nearly lowest adults 18-49 rated show) was canceled. Doesn't get any more definitive than that.”

Yes, The show had a lot of great things going for it, but it wasn't “young” enough. But this isn't just a rant from an Old Fogey about how the youngsters are killing all of the valuable culture in our society. (I'll save that for some future blog.) This is merely a statement of my confusion on the subject.

Here is a quiz for you: What do the following advertised products have in common?
  • Cialis and Viagra
  • Knee replacements
  • Faulty knee replacement law suits
  • Walk-in tubs
  • Ensure nutritional drinks
  • The Owl magnifier
  • Computer keyboards with oversized keys
  • Arthritis medications
  • Hoveround powered wheelchairs
  • Depends undergarments
I am sure you see the pattern:  
These products aren't being pitched to youngsters!!!

The target audience for many of these products is over 60. Wouldn't a show like Harry's Law be a perfect vehicle for these companies? So why did it get canceled?

There may be some esoteric logic here that can only be discerned by all-knowing network executives, but it is beyond me.