S@SeMo Volume 7 – Edition 68 A monthly newsletter from Sales and Service Momentum*. Our target market is YOU: Sales, Service, Support and Marketing LEADERS and our aim is to provide you with the BEST Advice, Innovation and VALUE through leading edge, dynamic articles tailored to your marketplace. To receive your complimentary monthy issues of S@SeMo, simply complete the details at the right—we'll take care of the rest! *MOMENTUM 'Once you know the direction of your goals - nothing can stop you'

Recession-proof YOUR Business

The end of the ‘gravy train’ is clearly in sight.

Our country has had major growth and major prosperity since the mid nineties. We all know this and many people expect it to continue, mainly due to our resources boom.

Really? On Tuesday, I saw people lining up for petrol at $1.59 a litre. The following day it hit $1.68 a litre … for standard – add another 11 – 12 cents a litre for high performance which we are told we have to put into our tanks.

Sure, it may go down – how far, and for how long will the price decrease?

Now, down to business.

Certainly, your sales team have been writing huge orders over the last few years … every sales team has been writing huge orders over the last few years … the economy has been booming!

So what’s starting to happen? Many of you are being squeezed to drop your price (and your profit margins). Many of you are being hit by major drives from your competition – pursuing your best customers, at whatever cost. The good times are well and truly coming to an end. When people stop buying (and consumer confidence is at its lowest ebb since 1991/92) we are in trouble.

Most of your salespeople have NEVER known tough times selling.

This leads me now to two things I am going to suggest – to those of you who have invested a few moments in reading this far – that the best ways to recession-proof your business (cut costs and bury your head in the sand is not one of them!) are …

1. Consider the absolute, awesome power of a proactive telephone sales team – more follows.

2. Set your field sales force on the right path to maximise relationships, maintain good sales and value add to your A and B customers….no matter how tough the economy!

I will devote the next edition of S@SeMo to this topic.

If you are considering establishing an outbound/proactive unit in your business, I can help you. To be honest, working with sales teams (training or business development) in the field is what I most aspire to … turning them into real 21^st century sales professionals is my goal. However, I realised over 20 years ago that telemarketing/tele-sales offers huge advantages to smart companies.

Consider these dynamic sales/service scenarios:

Sales

· Seeking new business opportunities from qualified prospects (leads supplied via customer service/telemarketing teams).

· Building and managing the business with current A/B customers – to a long term, systematic plan.

· Winning back good quality lost customers.

· All of the above based on 4 simple, power principles (they will be covered in S@SeMo #69) for massive sales success – even when times get a little tough.

Customer Service

Your customer service team …

· Turns enquiries into customers.

· Passes qualified leads to the sales team.

· Upsells and cross-sells at every given opportunity. Everyone in the team to a sales plan – it is not personality driven (‘she’s a real talker – the customers loooove her’), it is team driven. Leadership is the key.

· Has a zero tolerance to complaints. Every complaint is dealt with efficiently and in a timely manner.

Responsibility … Accountability. Simple.

Telephone Sales

Below is a checklist detailing how you can maximise sales and profits by developing a high quality (outbound) telephone sales team.

Your sales team walk through the door of a business – what does that cost you? $50, $100, $150 or …?

Look over the checklist below … it will cost you between $8-15 per outbound call. Think about that for a moment – which of YOUR current customers can be effectively and profitably handled via the telephone, so your sales team can concentrate on the TOP ones?

The remainder of this edition of S@SeMo brings back previous articles I have written about the power of the humble telephone.

I hope they offer you some good advice and some thought provoking ideas.

Kevin Cahalane….sasemo@bigpond.net.au

Contents in this Special Edition of S@SeMo

1. How the Humble Telephone will Build YOUR Business.

Do you want to turn your customer people team into a proactive, rather than reactive, team of professionals?

2. Turn ‘Cold into GOLD’ – how your sales team can increase sales and profits by effective telephone contact.

This article gives major insights into how Sales Managers can increase business and gain more profits through a planned, systematic use of the telephone for generating leads, new business acquisition and lost account reactivation.

3. How to Take Your Customer Service Department from a ‘Cost Saving and Cost Reduction’ focus to a High Profit and Business Growth Resource

Many companies view their customer service function as a way to reduce costs. Big mistake. Your customer service department can add huge profits to your bottom line.

4. Making the Move to an Outbound Telephone Sales Operation – All You Need to Know

Organisations need to become more proactive in their sales approach. Moving to an outbound telephone sales environment is one way to increase sales and profits, if it is done correctly.

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1. How the Humble Telephone will Build YOUR Business.

Guaranteed Steps to Success for Results, Relationships and Revenue

So, we're heading for tough times!

Why?

Because if we are told something often enough (by opposition politicians, bankers, debt collection agencies, economists, your next door neighbour, taxi drivers, stock market analysts and journalists) you are going to believe it - it becomes a self fulfilling prophesy.

Well, whatever the economic outlook – real or imagined – over the next year, perhaps it is time to assess how you are currently gaining business, what you will need to do to keep it and continue growing even when all around you are crying 'tough times' and are discounting madly, dropping services, slashing costs and 'downsizing' (one of my personally most hated words straight out of the 80's).

Never mind what the market is doing, what are you doing?

Answer: Look closely at how you use your telephone.

There are three key areas that senior people in any organisation simply must consider when analysing the awesome power of the telephone:

1. How can everyone in the organisation use the telephone as a customer service tool, not just an inconvenient interruption to their work?

2. How can we make our customer service department more responsive as opposed to reactive?

3. How can we become more proactive in telephone use, and contact our customers on a planned, systematic basis?

Let me be blunt. The telephone is a more dynamic resource than any e-commerce, direct mail, advertising or promotion strategy you will ever devise. At the very least, it is the equal to any of them, at best the telephone and the people who use it) can drive each of the abovementioned campaigns and add 20-50% more revenue to your bottom line.

Used effectively, the telephone is a prime tool in building customer relationships and loyalty.

Let’s look at the first two areas, mentioned above:

Everyone in your organisation becomes a 'Director of First Impressions'

The atom was split in 1944 and since then has become either a totally destructive force or a device which has helped to create a better life (physics and energy as examples). This is exactly the potential a ringing telephone has to your organisation—destruction or harmony. Everyone in your organisation has a responsibility to use the telephone in a professional manner every single time they answer it, transfer calls, put people on hold and take messages.

Ø Answering

A calm, courteous tone of voice helps. People don't like abrasive tones, sounds of food being masticated or being told to 'hang on'. Speed of response counts and answering work colleagues' extensions counts too—anything to make life easier for the caller.

Consistency is the key—for everyone.

Ø Transferring

Take a little time with callers; find out what they really want and who they need to talk to. Then, connect both parties rather than get rid of the caller in the quickest way. I call this 'clunking' - 'can I speak to your accounts dep...' – 'CLUNK!'

The other thing customers really hate is being put through to the wrong person or department and then sent on the 'transfer shuffle' where they are given the privilege of listening to music/a sales pitch/nothing at all or your employee telling them 'not my department, I'll just transfer you' - to the next extension and the next uncaring employee.

Ø On Hold

Don't do it. Don't leave callers on hold for more than 20 seconds. Offer them options, take personal responsibility, get their number and phone them back within an agreed timeframe.

Customers really hate waiting. They will pay a little more if they know they will get prompt service—part of that equation is not being kept on hold.

Ø Message Taking

A lot of business is lost because people don't take proper messages or fail to pass them on.

This is not rocket science here; however, a significant number of company employees do not take messages correctly. This causes lost time, lost productivity and lost business - for the sake of a few more questions to confirm correct details.

Is the above happening in your company? Do you phone in, from time to time, to check out how the telephone is utilised – as a business builder or business destroyer?

Everyone within your organisation has a responsibility to be an effective Director of First Impressions, utilising the power of the telephone in customer service (and sales) and becoming more responsive to customers, rather than reactive.

Become proactive – this was the third area, mentioned above, to gain better results and profits from good telephone usage

If you are not giving serious consideration to developing and building a strong outbound call program, within your company, you could be in trouble over the next few months—particularly if your competitors are moving in this direction.

Here are the steps to a powerful, productive and profitable telemarketing program:

Step 1. Persuade your field sales force that their major focus is to look after their 'A' customers and potential 'A' customers.

Move all other accounts to a telephone based sales and service program. Offer them the benefits of regular and planned contact, competitive pricing, excellent service, instant response if they need to phone (you don't get that from sales people on the road) and whatever else they were getting when a sales representative was visiting them.

Except now they are getting faster, more efficient service—only by telephone as opposed to a personal visit.

I have seen this professional approach to managing 'B' and 'C' customers work extremely well across a range of industries. Your customers are happy and you are happy—you are delivering a quality, cost effective service, that is gaining you RESULTS.

Combine this with a cross sell/up sell program and you are miles ahead in terms of productivity and profit.

Step 2. Select the right people for the role of telephone sales and service. Not everyone will jump at the chance! However, training, motivation, planning and leadership will go a long way towards ensuring you will be 100% successful when commencing a telemarketing operation.

The people you select will most likely have the knowledge—you provide them with the skills and they will develop the necessary sales attributes (training and coaching will help also!).

Select the right technology such as a Customer Relationship Management (CRM) package.

Step 3. Select the campaign. You have many choices—pick from any or all of the following:

Ø Account management, 'B' and 'C' customers can be contacted on a planned, regular basis. They get improved, more regular service - you gain more sales and profits.

Ø Account reactivation, there has never been a better time to regain lost customers. A well planned telemarketing campaign can achieve this.

Ø Account acquisition, you can go nationwide and overseas, via the telephone, backed by a good direct marketing strategy.

Ø Short term marketing and business building campaigns.

Ø Market research and customer satisfaction surveys.

Step 4. Collect data—build and manage your contact management system and ensure you provide call/sales reports. Telemarketing is not an ad hoc 'just pick up the phone and sell something'. It is a strategic process, with inbuilt tools, that can gain you fantastic returns.

The telephone will make a difference whether times are good or bad. However, its impact is most keenly felt when times do tend to get a little tougher. You need good people, obviously, who are keen and willing to learn new skills (there are no 'natural' telephone salespeople for instance, just as there are no natural plumbers or auto mechanics). You need a top driven Customer Relationship Management system and, most of all, you need leadership—the kind of dynamic, visionary people who can bring new dimensions to a company culture. A culture which, perhaps, implies—things have been good for the last ten years, why do we need to take a different direction?

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2. Turn ‘Cold into GOLD’ – How Your Sales Team Can Increase Sales and Profits by Effective Telephone Contact

Sales Managers are often faced with the dilemma of ensuring their sales team are managing highest quality relationships with their current customers as well as (a) gaining new business and (b) commencing the ‘win back’ process on worthwhile lost accounts.

Sales Managers need to ensure their sales people allocate a portion of their time (it may only be 5-15% of available time) to (a) and (b) above. Detailed below are the key steps to acquisition and win back – as well as a lead generation guide, which will ensure more effective and efficient outcomes for your people as well as a higher degree of success.

New Business Acquisition

Turning Cold into GOLD. A new business acquisition guide for your sales team.

1. Have a plan. 20 minutes of planning per day will improve your productivity. Your people will leverage their time for more effectively.

2. Have clear, personal goals for each call you are going to make. Which leads me to the next step.

3. Don't make cold calls! Research each call as much as you can conduct industry research, phone the company and get decisionmaker names, ask colleagues if they have any knowledge of the company - find out what you can but watch out for 'over preparation'.

4. Ensure all tools, resources are to hand. Analyse each call and make planned, systematic improvements as you progress.

5. Have a plan for turning gatekeepers into advocates. E.g. courtesy, friendliness, obtain/use their name and keep your conversation brief and professional.

6. When opening a call with the decisionmaker, here is a successful four part formula:

Ø a positive, confident introduction;

Ø confirm their status (are they the right person?);

Ø give the reason for your call: make it short and make it of value to them!

Ø Ask for their time, before you proceed.

7. Be aware that you are selling YOU - not a product or service - at this stage.

Then, refer to the last section of this article – Lead Generation – Your Guide to Making a Sales Appointment.

Lost Business Win Back

If they were valued customers, then your people need to plan a ‘win back’ strategy.

1. Determine WHY the business was lost - internal and external factors.

2. Determine IF the business is worth winning back.

3. Determine WHAT needs to be done to win the business back. Prepare a step-by-step plan.

4. Determine WHO is now the decisionmaker at this business - same person or new blood?

5. Determine HOW to approach this business e.g. write a letter/make an offer/update on new services ...?

6. Consider a special offer to regain the business (especially if your Company shares the blame for the split) but do not alienate current customers!

7. Set goals for the call; have a purpose.

8. DO IT.

9. Analyse results; improve as you proceed with your lost business reactivation campaign.

Don't sit there and wait for business to come to you - get your people on the phones to gain NEW business and REACTIVATE lost accounts.

Lead Generation – Your Guide to Making a Sales Appointment

Below is a guideline for that first time call, to gain an appointment (new business or lost account win back) – first time.

Ø Introduce yourself, let the decisionmaker know where you are from – in a firm, confident voice.

Ø Briefly confirm that the person you are speaking to is the person you should be speaking to.

Ø Give a reason for the call e.g. an introduction of yourself/desire to meet the person/talk about benefits you offer – be brief!

Ø Close by offering two available days/timeframes: ‘Would you be available for a meeting on __________ or _________?’

Ø If OK – confirm necessary details and terminate the call. You have the appointment – don’t move into a ‘selling’ mode!

Ø If an objection is put forward, compile a list of possible objections (e.g. too busy, happy with current supplier, tied up in a contract … you have heard them all before) and formulate a short response, ending with one more request for an appointment.

Ø If that fails, offer to keep-in-touch and arrange to contact them from time to time. Now, find a reason for that next contact!

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3. How to Take Your Customer Service Department from a ‘Cost Saving and Cost Reduction’ focus to a High Profit and Business Growth Resource

The more communication I have with people involved in telephone service and sales, such as Contact/Call Centres and Customer Service Departments, the more amazed I become at the reluctance to create more sales and profit opportunities through better interaction with current customers, reactivation of lost accounts and new business acquisition.

Companies are forever seeking ways to cut costs and reduce staff - particularly so in Call/Contact Centres (turning so many into 'Call 'n' Wait' disaster zones) - they often fail to see what rewards they can achieve by using the following formula:

1 humble telephone + 1 skilled operator + 1 established sales system = HUGE PROFITS!

Here are twelve ideas that can dramatically improve your bottom line RESULTS build greater customer RELATIONSHIPS and earn you (a company of any size and industry) more REVENUE.

1. Build the loyalty of your current customers

A 'no brainer' right? Why is that so many customers cannot get through to you, when it suits them?

Why are you constantly offering free incentives and reduced prices to gain new business?

CRM is meant to be the new service elixir. Well it is worth nothing if you don't listen to your customers.

Here's an example - in the last six months or so, a metropolitan daily newspaper has offered ten-week subscriptions for $39.90 (I pay more and have subscribed for 20 years), contests (win wine if you subscribe, see a rock group in concert!) and give-aways to induce new subscribers. Me, I get some sort of special club membership with the odd discount or special offer. But hey, so do the new subscribers! Who's ahead?

2. Gain referrals from current customers

The cost of losing customers is almost incalculable. Add to that the people they tell about their bad experiences and the people they never refer to you.

Instead, offer your current customers a total strategy of satisfaction and benefits. Then, encourage them to tell others.

Don't reward these referred customers (but do give them total satisfaction and benefits). Do reward your current customer for their referral.

Develop a system that will encourage customers to tell friends, family, their customers and associates about you and then say 'thank you' or offer them something of value for their efforts.

3. Add VALUE to every sale

Here is a really simple equation: If you give value - you get more sales.

That's it. If your people are trained to offer advice and information, educate customers, offer them creativity and innovation then your customers will buy more products and services, more often.

Even if your prices are slightly higher. This was the IBM way, back in the 60's and 70's with some great lessons to be learned. IBM charged the steepest prices in the industry but their service and support was legendary. The phrase 'no one ever got fired for buying IBM' originated way back then.

4. Turn an enquiry into a prospect

Then, turn that prospect into a customer. Then turn that customer into an advocate, one of your company's 'raving fans'.

All you need are trained people, a system and a monitoring and measuring plan. Simple? Yes it is, and like all things mentioned in this article, I will bet that some of your people excel at this and a number of them perform basic courtesies with callers - and that's it.

5. Create an upsell program

One becomes two. Two becomes four. Four becomes ... greater than the GDP of Argentina.

It is so simple, easy and effective and so few organisations employ this strategy. Many of your people don't do this because they think the additional cost will put the customer off. It doesn't. Not if the customer actually sees the benefit of greater quantity or improved quality.

6. Cross-sell at every opportunity

What can your people add on the original purchase? Extended warranty, on-site service, insurance, a savings if they purchase an additional item(s), a special offer or other options?

If everyone in your organisation upsold and cross-sold at every given opportunity, your sales would soar. I have witnessed increases of between 15-45% in companies where a simple upsell/cross-sell strategy was installed.

7. Negotiate on price

Don't just offer a discount or 'best price to you'. Let me reiterate, if you give value - you get more sales. Negotiate price. Train your people that by dropping price, they are giving away margin. So, if you offer a discount negotiate an upsell and/or cross sell. Package or bundle your offer to make it attractive and a genuine customer benefit.

8. Follow up

Every time your people give a quote, send a proposal or brochure out via fax, mail or e.mail, they should record a follow up timeframe.

Between one hour and three days. Everyone who requests information should be followed up by telephone. This leads to a higher close or conversion rate (I have witnessed 20-50%) or, if they have purchased elsewhere - your follow up call may be the commencement of a relationship ... or not. But you won't know if you don't follow up.

This rule should also be applied to complaint management. Most companies have no follow through with people who have complained.

9. Adopt a 'keep in touch' program

What can you do for your customers that will allow you to contact them on a planned, regular basis?

Special offers, new product or service introductions or ...? The best forms of 'keep in touch' are e.mail combined with a regular phone call.

But be warned - you should have a purpose for every call you make or email you send. Don't just bombard your customers (and prospects) with garbage.

10. Develop a systematic approach to lost customer reactivation

The longer you fail to make or maintain contact, the likelier you are to lose customers forever.

If you check the most recent contact vs previous contact frequency, you can detect a lost or about to be lost customer. Do something to regain their business.

This is the most costly part of your operation - the lost customer, the lost referral.

Do you have a lost customer reactivation plan?

11. Gain new customers

Why are there so few high quality telemarketing divisions in companies? Certainly, the 'T' word is considered dirty and grubby in some quarters and indeed it can be. However, where you have trained professionals, comprehensively developed objectives and strategies why wouldn't a well run telemarketing campaigns gain new business and new relationships for your organisation?

Quality telemarketing will generate leads, open up new business channels/market segments, build business with small, marginal and distance customers, give you real value (as a follow up) from exhibitions and seminars.

This is one of the most under utilised resources for business acquisition (and reactivation).

12. Develop and work your system

Success will come in all of the previously mentioned guidelines, tips and hints if you adopt a systematic approach. That is:

a) A sales and service oriented contact management system, based on a quality CRM package.

b) Well trained people who consistently add value to and gain value from every call they take or make.

c) Monitoring, Measuring and Reviewing each of the above and seeking continuous improvement both in contact management and people skills.

It is simple and what's more, it works. Use the power of the humble telephone (and quality people) wisely, and you will gain great RESULTS:

Relationships and Revenue.

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4. Making the Move to an Outbound Telephone Sales Operation – All You Need to Know

'When I'm Calling You ... Will You Answer True?'

Making the move to an Outbound Call Operation

Since there are so many meaningful initials and acronyms floating around in business today, let's start by giving the subject matter here a REALLY COOL acronym - MOCO (Moving (to an) Outbound Call Operation). Has sort of a coffee bean 'flavour' to it.

Now, down to business.

Organisations of all shapes and sizes are becoming more proactive in their approach to telephone selling.

Incidentally, what does 'Proactive' mean? It is one of many hyped words/phrases that tend to float around the world of business – like ‘empowerment’ and ‘synergy’. It means, simply: To control a given situation or to create a new situation.

So, Your Inbound Call Centre/Help Desk can indeed be a proactive environment (add on sales, special offers, new product information and more).

And, when you elect to commence MOCOing you will be creating a new 'situation'. However, a word of caution:

If your current inbound operation is not truly proactive - customer friendly, technologically sound, team focused and well managed - you have virtually no hope of establishing and successfully launching an outbound operation.

There are some extremely important questions to ask, for a start:

Why are you doing it?

Build and manage better relationships with established customers?

Re-gain lost accounts?

Gain new business?

Obviously the above will be achieved through a variety of methodologies to gain best results.

Will it be a stand-along operation or will you LINK it to other key areas within your organisation?

For instance, those of you who want to reduce the workload of your field sales force in dealing with marginal, distance or no-growth accounts - adding outbound telemarketing becomes as simple as A, B, C.

A accounts (and potential A's) are managed by your field sales force.

B accounts (and potential B's) are managed by your outbound telemarketing team. Also, they can support the field sales force with A account backup/support.

C accounts are encouraged to contact your Customer Service Call Centre. If this is a proactive Call Centre, then these customers will be well serviced.

Also, a combined customer service/telemarketing team can have a dramatic impact on bottom line results by offering customers a total service structure.

Who will we have on our team?

Let's start with Charlie - been with the company 25 years, as a sales 'rep' (I hate that word, but it is appropriate for now) and has found the going tough in the last 5-6 years (or he has been in accounts, warehouse, front counter - whatever). Will Charlie be a good telemarketer. Probably not - one example, of a salesperson making six calls a day moving to an environment where they are expected to make six calls an hour, should suffice!

How about Kylie - been a CSO for 10 years and has a 'natural' ability with customers but gets a bit stressed at certain times or with certain people. How will Kylie go? Probably not all that well.

The point here is - you may not be able to staff your outbound call centre entirely with your current staff. There are a number of processes to go through - interviewing, testing, career appraisal, discussing performance standards and training. I personally observed a major organisation totally fail in their bid to establish a telemarketing operation because they did not have the right people (all internally chosen from other departments with lessening staff requirements).

On the other hand, many of your customer service people may view a telemarketing role (say as part of a mix in their career) as a tremendous career boost.

Who will the Leader be?

Do you have a leader ...

who will take ownership and responsibility?

who has experience and expertise (or who has the ability to learn quickly)?

who will commit to long term goals and a successful outcome?

who will gather the resources necessary to sustain momentum?

who will develop a top team to ensure success?

What is the PURPOSE of the Move

Can everyone involved 'see' the outcomes in terms of departmental growth, better customer relationships, greater revenue and improved results?

Can everyone involved understand the benefits to customers - internal and external - that this move will bring?

Is everyone positive and excited about the move?

Is there a common VISION, PURPOSE, OBJECTIVES and STRATEGY to ensure a successful shift.

Is the organisation culture right to ensure success?

Who else needs to be involved - internal/external?

Does the leader and their management team have the commitment, co-operation and collaboration of senior people within the organisation?

Are other key people within the organisation taking responsibility and accountability to ensure a smooth transition?

Who will you use externally (if not fully covered internally) for IT/Telecommunications transitions, recruitment and training? What is their experience, what are their successes and who will work with you to achieve your goals?

How will you monitor progress?

Can you measure the success of the move in real terms?

Are you able to benchmark progress either through key performance indicators, results achieved to date, the implementation process, or a combination of all three?

How will your current systems and structures be changed or modified?

Will you need to radically alter your current contact management system to grow and evolve with as the operation expands?

Will you be linking your inbound/outbound operation? What other areas are in this link - the sales force, marketing, accounting, warehouse, branch network?

Do you have unique needs that will require optimising or altering your current IT and telecommunications?

How will you distribute, share and synchronise customer/prospect information to relevant people/departments?

How will you allow your team to fully exploit the power of new/altered technology with a minimum of fuss, expense and learning time?

For those of you currently undertaking this task of MOCOing - all the best. Things have changed from a number of years ago and outbound telephone sales has become recognised, as it should be, for its professional approach, its vital link to the company and for the skills of its people.

As mentioned in the model above, LEADERSHIP is still the key to success and continuing Customer Satisfaction must be the main outcome.

Be confident and self assured for SUCCESS at Telemarketing. Never, ever give into setbacks. And, as Victor Kiam said ‘Procrastination is opportunity’s assassin’.

Be Positive and SUCCESS is bound to happen!

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For a full and frank discussion of your training and business building needs, please call Kevin Cahalane on

03 9840 2966 or e.mail to: sasemo@bigpond.net.au

Kevin Cahalane

SaSeMo

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