Uncategorized

How Many Salespeople Will Be Left by 2020?

Guest post from Selling Power Magazine by Gerhard Gschwandtner

Note: When Selling Power Magazine came out 15 years ago or so they were way out of the box. They are still innovative and I think this article is worth thinking about if you’re running a sales department.

I’m not sure whether I agree with the numbers: from 18 million salespeople to 4 million in less than 7 years. However I think you’ve got to be hiring better salespeople who are innovative and entrepreneurial or you and your department become dinosaurs …

At our last Sales 2.0 conference, I asked the audience members to raise their hands if they had ever purchased anything on Amazon.com. All hands went up. Then I asked, “How many of you have ever spoken to an Amazon.com salesperson?” Nobody! Amazon.com’s technology architecture has eliminated the need for salespeople. According to the Census Bureau, the amount of sales closed over the Internet through such e-commerce sites as Amazon exceeded $165.4 billion in 2010. According to Forrester Research, that number will grow to $250 billion in 2014.

Lorenzo-As computing power accelerates, online interaction will become more customer friendly, and B2C online sales models will be adopted by B2B companies. Some software companies have already begun to sell their applications online. After the online sale, customer service representatives will stand by to help answer questions.

 

Technology is clearly transforming the profession of selling. IBM is currently working on the DeepQA project, which will allow question-answering technology to consistently outstrip the best human performance. IBM’s team has demonstrated that its processing computer called “Watson” can understand natural language and deliver a single and precise answer to a question asked on Jeopardy! IBM found that the average response time on the game show is 3.5 seconds. IBM’s team created a computer that allowed Watson to deliver the right response faster than the average contestant.

 

At the core of the transformation process is not the software application used, but the computing power that drives the application. For example, in 1992, many computers ran on the 66-MHz Intel chip 486DX. The speed of this chip was 54 MIPS (million instructions per second). Today’s Intel chip Core i7-990X Extreme Edition runs at 3.46 GHz, and it can perform 159,000 MIPS.

 

As the number of software applications is exploding and computing power is accelerating, we will see more sales tasks move online, requiring fewer salespeople.Gartner, a research organization, predicts that by 2020, 85 percent of interactions between businesses will be executed without human intervention. It is likely that of the 18 million salespeople in the United States, there will be only about 4 million left.

 

If today Watson can respond to complex questions in natural language with pinpoint accuracy and in fewer than three seconds, it is likely that 10 years from now, a Watson-like online sales avatar will answer all the questions customers need to ask in order to make a final purchasing decision. I see a clear trend: Outside sales will continue to shrink throughout this decade. Inside sales will grow at a 15 percent rate per year. Sales-support staff will increase over the next decade. New job titles such as chief listening officer, sales transformation manager, sales operations manager, and sales analyst will expand. If you want to stay in sales for the next decade, my advice is to become more efficient, more motivated, more solutions oriented, and more customer focused. The bottom line: If we don’t find and fill a need faster than a computer, we won’t be needed.
Read More
Uncategorized

Added Value of the DISC Assessment

 

If you’re a sales manager who also has the responsibility to hire salespeople, you probably know that completing the hire is not just the end of a process, but the beginning of a relationship. Now you have to deal with managing the new hires—and relating to them—and that’s not always easy. Oh sure, you know enough about them to be somewhat confident that they can do the job, but other aspects of their personalities are a mystery. Imagine the value of having all the information you need to understand, motivate, and manage your new salesmen. Something like, say, the comprehensive report generated after a DISC assessment.

As sales workers, we all know the importance of added value to our transactions with our customers. Wouldn’t it be just as important to add value to our sales hiring process? The traditional sales hiring methods may lead us to certain perceptions about our candidates, but will they be able to handle stressful situations? Will they be able to interact in a positive way with the rest of the team? You can’t just walk on eggshells until you know them well enough to know how to deal with them; who has the time? If only there were some way to understand the way they think and react—a crystal ball would be nice.

Well, the truth is, if you used the DISC assessment in your hiring process, you have the next best thing to a crystal ball. The DISC assessment provides a 22 page individual report for every person tested. The information on this report will provide insight to both the managers and the salesmen so that the most optimal professional relationship can be developed. If you’ve never used DISC assessment in your sales hiring process, here is a list of some of the sections that provide insights to your candidates/salesmen:

  • Sales characteristics

This section highlights the natural sales style of salesmen—how they deal with preparation, presentation, handling objections, closing, and servicing.

  • Value to the organization

In this section, you can identify specific talents and behavior, which will help you to develop a system to capitalize on the value brought by every individual and make each of your salesmen an indispensable part your team.

  • Checklist for communicating

When you care about your sales team, you want to be able to create an environment for effective communication so that everyone can interconnect at the appropriate level. This section provides insight on how to accomplish that.

  • Keys to motivating 

Obviously, salesmen are more motivated when something they want is the “prize.” By understanding the wants of salesmen, managers can be assured of having ways to keep them motivated, and therefore productive.

  • Keys to managing

Although it would be nice if all salesmen could perform at an optimum level on autopilot, it’s essential to be an effective manager. This section provides keys to managing salesmen according to the information provided by their responses on the DISC assessment.

 

There is much more information you can learn from a DISC assessment such as the one included in the AHS sales hiring system. Maybe it’s not a crystal ball, but when DISC assessments are used in the sales hiring process, employees will be gratified in knowing that they are valued by the company and will perform at their highest level.

 

Read More
Uncategorized

What Makes a Good Salesman? Integrity!

As we  explore the different traits that are considered essential in defining what makes a good salesman, let’s consider the stigma that is sometimes attached to the profession. Unfortunately, there’s a stereotype out there that many people associate with anyone in sales. Good salesmen have been the butt of jokes for decades, perhaps even centuries. In popular culture, they have been portrayed as shameless hucksters since the days of door to door snake oil salesmen. Even a Broadway musical, The Music Man, portrays the main character as a shyster.

Because of these unflattering caricatures, there tends to be a negative perception of salesmen. It’s no wonder that they have to work so hard just to overcome reluctant customers and make an honest living!

When we talk about sales resistance in customers, cost is often the factor that first comes to mind. But there’s another, very important, factor—trust. That’s why integrity is a fundamental ingredient in what makes a good salesman.

Integrity, honor, uprightness, reliability, sincerity, honesty—there are plenty of words that basically mean, “You can trust me—I will never steer you wrong.” It’s a crucial factor in building relationships with customers and establishing a rapport where all parties are comfortable going through the process together.

Once a salesman closes a deal with a customer, the customer should have a good feeling, not a bad taste in his mouth. It’s the salesman’s job to make sure that this good feeling happens; after all, the customer’s not only buying a product or service, he’s buying what the salesman is telling him. No company wants their salesmen selling lies.

If we were to ask sales managers where the salesmen’s focus should be, they would most likely tell us that salesmen should be sales-focused. While this is true, the sale is only the last step of the formula. The first step is gaining the customers’ trust by focusing on their needs and concerns, then maintaining that trust throughout the process. When the focus is on the customer, it naturally follows that the sale will be accomplished, which will advance the success of the company.

So customer-focus equals sales-focus, which equals company focus. When you make integrity a part of the formula for what makes a good salesman, you can be assured you’re hiring someone whose priority will always be to do the right thing for the customers and the company. This type of selling is a win-win-win situation, and it builds respect from customers, colleagues, and managers, creating a foundation for selling success over the long term.

Ultimately, making integrity a primary element in your formula of what makes a good salesman boils down to a simple but important concept: protecting your company’s reputation. If you don’t follow a proven sales hiring system such as the one provided by AHS, you may end up hiring salespeople who will do anything to make a sale. As a result, you’ll end up with more than your average number of dissatisfied customers. This will lead to customer service problems, damaging feedback, and negative word-of-mouth. We all know how that can affect a company!

 

 

Read More