New Sales. Simplified.

Synopsis

Do you or your salespeople find that most of your sales efforts go to waste? Most sales divisions rely on existing clients instead of a new business. When you understand the top reasons why people fail to generate new sales, you will no longer only babysit your current accounts and can then become a true sales hunter.

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How do the theories presented in "New Sales. Simplified." challenge existing sales paradigms or practices?

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The theories presented in "New Sales. Simplified." challenge existing sales paradigms by emphasizing the importance of generating new sales rather than relying on existing clients. It encourages salespeople to become "sales hunters" who actively seek out new business opportunities, rather than just maintaining current accounts. This approach challenges the traditional practice of focusing on account management and customer retention, and instead promotes a more proactive and aggressive sales strategy.

What potential obstacles might companies face when applying the sales strategies from "New Sales. Simplified.", and how could they overcome them?

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Companies might face several obstacles when applying the sales strategies from "New Sales. Simplified.". These could include resistance to change from the sales team, lack of understanding of the new strategies, or difficulty in shifting focus from existing clients to new business. To overcome these obstacles, companies could provide comprehensive training to their sales team, ensure clear communication of the new strategies and their benefits, and gradually shift focus to new business while maintaining relationships with existing clients.

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New Sales. Simplified. presents practical and hands-on tips and simple and structured approaches that can increase your sales revenue. Read this book summary to learn how to sharpen your sales weapons, the magic words to use during a cold call, and the most effective structure for your sales story.

Top 20 insights

1. Limit the time and effort you spend to respond to RFPs, or requests for proposals. Sales experts warn that although it can be exciting to get these requests, the rate of success with RFPs is low because you are probably responding to a request that your competitor helped the prospect write.
2. The number one pitfall in a sales pitch is self-focus. Identify whether this is a problem in your organization by this test: Ask your sales leaders what they can tell you about your company. If they respond with product or company attributes rather than customer issues, you have a problem.
3. Companies with premium priced products must be prepared to invest in the development of sales capabilities. A common excuse in these organizations is that salespeople lose out to competitors based on price. If this is a recurring excuse, coach your salespeople to tell a premium sales story to match the premium pricing.
4. Sales experts use this tactic to sharpen their language: As you prepare for a sales call, ask yourself ""so what?"" for each statement or bullet point on the agenda. Each statement you make must be clearly relevant to your customers' issues.
5. This formula to craft a sales story has been proven effective at over fifty leading companies. First, list the client issues that your business can address. Next, detail exactly what you offer. Lastly, outline your key differentiators.
6. "Let me steal a minute" are the best words to use in the opening of a cold call. It is relaxed, somewhat informal, not overused, and openly acknowledges the fact that you are taking someone's time unexpectedly.
7. "I head up" is another phrase that successful sales consultants recommend using. For example, "I head up our northeast division." It communicates leadership, authority, a sense of ownership, and imbues confidence in those who use it.
8. Countless successful sales leaders attest that you should expect to ask three separate times in the same conversation before your prospect might agree to an in-person meeting. Asking three times for the meeting should not be viewed amongst your salespeople as overly pushy but rather the right degree of assertiveness.
9. There are three magic words to use when you ask for an in-person meeting over the phone: visit, fit, and value. Use "visit" instead of "meeting" because it sounds less serious. Discuss whether you might be a good "fit" for the customer. And, use phrases such as "perhaps we could add 'value' to your business."
10. Before you invest time and resources to compile a proposal, clarify who has the decision authority in the organization, the timeline to make a decision, the available budget, and the degree of willingness to make a change. Such information greatly clarifies whether the proposal is worth your time.
11. Work backward to translate your sales goals into the amount of activity needed earlier in the sales process. Track your activity for a quarter to obtain these numbers for yourself and see where improvement is needed.
12. Next, translate your quarterly goals for closed deals into the number of initial proactive conversations you need to have to get there.
13. To strategically find new business, seek out potential customers that closely resemble your best current customers. It is more likely that you'll bring a clear value proposition in those situations. Make sure that these target accounts are finite, focused, written, and workable.
14. Be aware of the "prisoner of hope" complex. That is, you are always holding out for one of those promising new proposals to hit. You become a prisoner of hope to a precious few deals and neglect the process to create new opportunities. This is one of the most common reasons salespeople fail.
15. When you spend too much time to be a good corporate citizen, you are likely trapped in another common pitfall. People who have a difficult time saying "no" tend to push new business development efforts to the bottom of the list.
16. Only 10-15% of the sales team in a typical organization can be classified as true A-player hunters when it comes to new business. Far too often, managers overload their sales team with tedious account management work. Unleash your A-players to find new business and experience growth instead.
17. To incentivize salespeople to find new customers, consider a compensation model that decreases the commission payout on existing business over time, with exceptionally high payouts in year one. Also dole out an extra bonus for closing a deal.
18. There are three organizational prerequisites for the sales division can do its job well. The business must have a clear strategy and market demand, the compensation structure must incentivize new sales, and the sales talent must at least be average.
19. If you struggle to hit your sales targets, consider the counterintuitive approach to sell to one level higher up in your customer's hierarchy. These senior leaders may be more likely to see you as a problem-solver and business partner rather than yet another salesperson who tries to know down their doors.
20. To find your priority accounts, order your customers among the dimensions of 1) most revenue spent with you, 2) likelihood of growth, and 3) most likely to be at-risk. The customers that are at the top of multiple of these lists should garner more of your attention.

Summary

Salespeople who are responsible to generate new business are struggling. Some buy into the myth that search engine optimization and digital marketing have made their jobs obsolete. They also lack seasoned mentors to coach them. Most important of all, many have lost focus on how simple it is to go after new business. Sales veteran, expert, consultant, and coach Mike Weinberg outlines a simple and effective strategy to find new sales: identify your target accounts, sharpen your sales weapons, and attack your targets. Learn practical tips, tricks, frameworks, and tactics for succeeding at each of those steps in this book summary.

Questions and answers

What is the role of seasoned mentors in sales as discussed in the book 'New Sales. Simplified.'?

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Seasoned mentors play a crucial role in sales as discussed in the book 'New Sales. Simplified.' They provide guidance and coaching to salespeople, especially those responsible for generating new business. These mentors can help dispel myths, such as the belief that digital marketing and search engine optimization have made traditional sales roles obsolete. They can also help salespeople maintain focus on the simplicity of pursuing new business. Through their experience and expertise, seasoned mentors can assist in sharpening sales strategies and tactics, ultimately leading to more effective target identification and attack.

How does the book "New Sales. Simplified." emphasize the importance of identifying target accounts in sales?

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The book "New Sales. Simplified." emphasizes the importance of identifying target accounts in sales as a crucial step in generating new business. According to the book, many salespeople have lost focus on the simplicity of pursuing new business. The author, Mike Weinberg, outlines a straightforward and effective strategy for finding new sales, which begins with identifying your target accounts. This step is followed by sharpening your sales weapons and attacking your targets. The book provides practical tips, tricks, frameworks, and tactics for succeeding at each of these steps.

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The three-step approach to generating new sales

Finding new customers can be uncomfortable, and it is easy to default to "babysitter" mode in servicing existing accounts. This can put your business at risk in the long term. Generating new sales does not have to be complicated. Sales expert Mike Weinberg outlines a simple three-step process. Even if you aren't in sales yourself, this approach can be helpful for individuals at any level of a company, including those running small businesses. The insights shared here can also be applied to those hunting for a new job or potential investors, anyone putting together a communications or marketing plan, or a human resources manager searching for a new way to reinvigorate and incentivize employees. Here are the three steps for generating new sales.

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How can the insights from "New Sales. Simplified." be applied to those hunting for a new job or potential investors?

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The insights from "New Sales. Simplified." can be applied to job hunting and potential investors in several ways. Firstly, the book's emphasis on proactive outreach and relationship building can be used in networking and identifying potential job opportunities or investment prospects. Secondly, the book's strategies for clearly communicating value can help job seekers effectively convey their skills and experiences to potential employers, or help potential investors understand the value of an investment opportunity. Lastly, the book's focus on persistence and resilience can encourage job seekers and investors to stay motivated and persistent, even when faced with challenges or setbacks.

Can you elaborate on the three-step process for generating new sales as explained in New Sales. Simplified.?

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The three-step process for generating new sales as explained in the book 'New Sales. Simplified.' involves:

1. Identifying potential customers: This involves researching and finding out who might be interested in your product or service.

2. Reaching out to these potential customers: This could be through cold calling, emailing, or even face-to-face meetings. The goal is to introduce your product or service to them.

3. Closing the sale: This is the final step where you convince the potential customer to purchase your product or service. This could involve negotiations on price, delivery, and other terms.

This process is simple but requires persistence and a good understanding of your product or service and the market.

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• Step 1: Select Your Target Accounts
• Step 2: Sharpen Your Sales Weapons
• Step 3: Attack Your Targets

Step 1: select your target accounts

How to strategically select your target accounts

Most sales activities are repetitive and tactical. Selecting which accounts to target is a strategic and exciting exercise. It is also an opportunity to engage senior leadership in decision-making and participate in moving the vision of your company forward. The accounts that you spend the most time and resources pursuing should be the ones that "look, smell, and feel" like your best existing customers. Your best customers may have one or more of the following qualities: they spend a lot of money with you, the relationship is a true partnership that produces value for both parties, they have been giving you business for a long time, they provide you with referrals, or their spend with you has been increasing over time. Once you've identified your best customers, profile those customers by answering these questions about them: Why did they initially become customers? Where are they located? Are they a particular size? Are they in certain vertical markets or niches where we have a higher rate of success? Where can we find potential customers with similar profiles?

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How can the concept of true partnership with customers enhance the value for both parties?

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The concept of a true partnership with customers enhances value for both parties by fostering a relationship that goes beyond mere transactions. It involves understanding the customer's needs, goals, and challenges, and aligning your offerings to help them succeed. This creates a win-win situation where the customer benefits from tailored solutions and the company benefits from customer loyalty, repeat business, and potential referrals. It also allows for open communication and feedback, which can lead to improvements and innovation in your products or services. This kind of relationship builds trust and long-term commitment, making it more likely for the customer to continue doing business with you and potentially increase their spend over time.

What role does senior leadership play in the decision-making process of selecting accounts to target?

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Senior leadership plays a crucial role in the decision-making process of selecting accounts to target. They participate in strategic exercises to identify potential accounts that align with the company's vision and goals. The accounts that are pursued are often similar to the company's best existing customers in terms of spending, partnership value, longevity of the business relationship, referrals, and increasing spend over time. Senior leadership's involvement ensures that the selection process aligns with the company's overall strategy and vision.

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This exercise initiates the process of creating a target account list. Some other sources to consider when searching for companies to pursue include local business journals published by American Cities Business Journals. These local business journals often put out a "Book of Lists" annually with business and contact information and are a great source of information for profiling potential targets. Hoovers is also a go-to database for online, up-to-date company information. Also, don't discount old-fashioned trade shows or industry associations as part of your search for finding new business and staying up to date.

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What are the key takeaways from the book that are actionable for salespeople?

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The key takeaways from the book that are actionable for salespeople include:

1. Creating a target account list: This is the first step in the sales process. It involves identifying potential customers and gathering information about them.

2. Utilizing various sources for company information: This can include local business journals, online databases like Hoovers, and even trade shows or industry associations.

3. Staying up to date: Salespeople should always be aware of the latest trends and developments in their industry. This can help them identify new business opportunities and stay ahead of the competition.

How can a startup use the strategies mentioned in the paragraph to grow?

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A startup can use the strategies mentioned in the paragraph to grow by creating a target account list. This can be done by using resources such as local business journals, online databases like Hoovers, and attending trade shows or industry associations. These sources provide valuable information about potential targets and industry trends. By identifying and pursuing these targets, a startup can generate new sales and grow its business.

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The qualities of your target account list: finite, focused, written, and workable

Finite

To gain traction and close deals, your list of the strategic targets you are pursuing needs to be finite. That is, it must have an end. The most successful salespeople relentlessly go after their finite lists and do not give up and start fresh once they've exhausted the list. Instead, they keep working their finite list and, after eventually getting noticed, get deals to go through. It is a mistake to continually look for new contacts to pursue after having already identified your strategic targets for good reasons.

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How does the theory of pursuing a finite list of strategic targets presented in "New Sales. Simplified." challenge existing practices in sales?

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The theory of pursuing a finite list of strategic targets, as presented in "New Sales. Simplified.", challenges existing sales practices by advocating for a more focused and persistent approach. Traditional sales strategies often involve constantly seeking new leads or contacts once the existing list is exhausted. However, this theory suggests that salespeople should instead concentrate on a finite list of strategic targets and persistently pursue them until they achieve a breakthrough. This approach challenges the conventional wisdom of constantly seeking new prospects, emphasizing the importance of persistence and focus in successful sales.

How relevant are the themes of "New Sales. Simplified." to contemporary issues in sales and marketing?

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The themes of "New Sales. Simplified." are highly relevant to contemporary issues in sales and marketing. The book emphasizes the importance of strategic targeting and persistence in sales efforts, which are timeless principles in the sales and marketing field. In the current business environment, where competition is fierce and customers have numerous options, these strategies are even more crucial. The book's focus on not giving up on strategic targets and continually working on them aligns with the modern emphasis on building long-term relationships with customers rather than just making one-time sales.

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Focused

Sales experts share that periods of high yield and success in pursuing new business often occur as a result of an intensive, focused effort. Focused in this case means honed in on a specific vertical market or type of company. Once the product or service resonates within a given niche, it is smart to begin focused efforts on other companies similar areas.

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What are some of the most innovative or surprising ideas presented in New Sales. Simplified.?

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The book "New Sales. Simplified." presents several innovative ideas. One of them is the concept of focusing on a specific vertical market or type of company for high yield and success in pursuing new business. Once the product or service resonates within a given niche, it suggests to begin focused efforts on other companies in similar areas. Another innovative idea is the emphasis on becoming a true sales hunter, which involves sharpening your sales weapons and using the right words to generate new sales.

How might a company in a traditional sector like manufacturing apply the sales approaches discussed in New Sales. Simplified.?

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A manufacturing company can apply the sales approaches discussed in New Sales. Simplified. by focusing on a specific vertical market or type of company. Once their product or service resonates within a given niche, they can begin focused efforts on other companies in similar areas. This approach allows the company to leverage its strengths and expertise in a particular area, thereby increasing the chances of generating new sales. Additionally, the company can use the sales techniques discussed in the book, such as sharpening their sales weapons and using the right words, to further enhance their sales efforts.

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Written

It may sound crazy in the age of iPads, smartphones, and comprehensive CRM systems to ask salespeople to carry around or post a written target account list. But in reality, it is still effective. Scrolling through screen after screen of the CRM is no substitute for handwriting your one-page list of target accounts, or printing it off and posting it by your desk.

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Can you provide examples of successful salespeople who still use a written target account list?

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While specific names of successful salespeople who use a written target account list are not publicly disclosed due to privacy reasons, it's a well-known fact in the sales industry that many successful salespeople still use this traditional method. They find it effective to have a physical list that they can refer to and update regularly. This method helps them to stay focused on their target accounts and not get lost in the digital clutter. It's a personal preference and varies from person to person.

What are the advantages of having a written target account list over using a CRM system?

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Having a written target account list can be more effective than using a CRM system for several reasons. Firstly, it allows for a more focused approach as you can easily see your target accounts at a glance, without having to scroll through multiple screens. Secondly, the act of writing or printing the list can help reinforce the information in your memory. Lastly, having a physical list posted near your workspace can serve as a constant reminder of your targets, which can help keep you motivated and on track.

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Workable

There is no right answer to the exact number of accounts a salesperson should be working at any given moment. Key factors include: type of sale, the sales role, and the sales cycle. Depending on each of these, the number of accounts assigned per salesperson could flex up or down. The right balance allows the sales team to reach each of their accounts in a reasonable time frame.

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What potential obstacles might a company face when applying the concepts from "New Sales. Simplified." and how could they overcome them?

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A company might face several obstacles when applying the concepts from "New Sales. Simplified.". These could include resistance to change, lack of resources, or a lack of understanding of the concepts. To overcome these obstacles, the company could provide training and support to its employees, allocate sufficient resources to the implementation of the concepts, and ensure that the benefits of the new approach are clearly communicated to all stakeholders.

What influence has "New Sales. Simplified." had on corporate sales strategies?

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New Sales. Simplified." has had a significant influence on corporate sales strategies. It has helped businesses understand the reasons behind unsuccessful sales efforts and has provided insights on how to become a successful sales hunter. The book has also offered guidance on how to sharpen sales skills, use effective communication, and maintain a balanced number of accounts for each salesperson. It has emphasized the importance of reaching each account in a reasonable time frame.

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Step 2: sharpen your sales weapons

Why you need sales weapons

Working in sales becomes less intimidating when you understand that it is an exercise in deploying sales weapons to reach your targets and ultimately help solve their problems. To maximize effectiveness, you must have a variety of sales weapons at your disposal, they must be high-quality, and you must be adept at using them. The ultimate weapon is the sales story because it can be altered to fit most any of the other sales tools. Other sales weapons include email, social media, the proactive telephone call, voicemail, traditional printed marketing materials, digital marketing tools (blogs, podcasts, webinars), white papers, case studies, samples, and trade shows, just to name a few.

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The sales story

Stop talking about yourself and your company and begin leading with the issues, pains, problems, opportunities, and results that are important to your prospect.

Being able to tell your story as a company is among the most valuable assets you can have. Most salespeople, not to mention business executives, have not yet mastered this. It becomes apparent that the company lacks a compelling story through the report-backs of salespeople. They are on the frontlines and can identify most accurately if the elevator pitch they've been trained to deliver is resonating with customers. The number one most common mistake in the sales story is self-focus – making the pitch all about you, your company, what you offer, how great you are, etc. The customer is concerned primarily with themselves and their bottom line. How can you help? Here is a quick tutorial on creating your own sales story: Think of your sales story as the foundation of all your sales and marketing tools. Once the sales story is set, the rest falls into place easily. There are three parts to the sales story that you'll need to assemble: 1) Client issues, 2) Offerings, and 3) Differentiators.

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In what ways has "New Sales. Simplified." influenced modern sales strategies and business models?

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New Sales. Simplified." has influenced modern sales strategies and business models in several ways. Firstly, it emphasizes the importance of understanding customer issues and starting the sales story in a customer-focused way. This approach positions the salesperson as a problem-solver and partner, which is a key aspect of modern sales strategies. Secondly, the book encourages salespeople to ask themselves certain questions to better understand their customers' needs and expectations. This introspective approach helps in creating personalized sales strategies, which is a crucial aspect of modern business models. Lastly, the book promotes the idea of salespeople handling tasks that prospects are trying to do for themselves, which aligns with the modern business model of providing comprehensive solutions to customers.

How does "New Sales. Simplified." challenge traditional sales practices?

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New Sales. Simplified." challenges traditional sales practices by shifting the focus from the seller to the customer. Instead of starting the sales process with what the seller can offer, it begins with the customer's issues. This approach positions the seller as a problem-solver and partner, grabbing the customer's attention. It encourages sellers to understand why their best customers initially came to them, what business problems they were facing, and what results they were looking to achieve. This customer-focused approach is a significant departure from traditional sales practices, which are often self-focused.

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Client or customer issues always come first. This begins your sales story in a customer-focused, not self-focused way. Starting with their issues grabs their attention and positions you as a problem-solver and partner. To identify these for your company, ask yourself the following questions. Why did your best customers initially come to you? What business problems were they facing? What results were they looking to achieve? To dig deeper, consider additional questions such as: What problems do you see prospects experiencing from trying to do for themselves what you should be handling for them? List all the answers to these questions that come to mind. If you have several distinct customer segments, consider the questions from their separate perspectives.

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The next part of the sales story is simply stating and identifying what you sell. This section should be straightforward. What are your products or services, and how do they address the customer pain points you've identified?

The last section is your differentiators. Like the customer issues section, it is helpful here to brainstorm with a couple of questions in mind. What are all the reasons that you believe your company, product, service, or solution is better and different? Consider multiple dimensions, including aspects like the level of service you provide or the unique culture of your company.

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Now that the three component parts of your sales story are in place, it's possible to tailor any number of sales weapons and be prepared for a variety of situations. You are ready to attack your target. The next section provides pointers about how best to do this.

Step 3: attack your targets

The cold call

After making hundreds of cold calls in his lifetime, sales expert Mike Weinberg has a couple of tips. It is easy to detect someone's mindset over the phone. Begin with a positive mindset and your voice and the appropriate tone will follow. Although a strict script isn't recommended, call outlines and talking points can help structure the call. Of course, now would be a good time to share some snippets from your sales story. Make sure you are clear on the objective of your call. In most cases, this is to get an in-person meeting. As mentioned earlier, expect persistence. You likely need to ask for an in-person meeting three times before your prospect agrees to it. Regarding voicemail, take this in stride and anticipate it as a regular part of the cold-calling process. Plan to leave more than one voicemail over time, and strategically drop elements of your sales story within each one. Lastly, be human. Prospects may finally give you the call back if you weave a bit of humor or light-hearted guilt into the voicemail.

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Meeting in person

If you get an in-person meeting, own the agenda so that you can own the sales process as well. A couple of tactical tips include ditching the projector in favor of a pad and pen. Treating the meeting like a dialogue rather than a presentation will work in your favor. On that note, be sure to listen much more than you talk. Consider sitting on the same side of the table as the prospect to dial down the formality as well. The core parts of your agenda will be delivering your sales story in three minutes or less, asking probing questions to understand fit and identify any specific roadblocks, and doing the actual selling.

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How to get it done

It's highly unlikely that, given options with how to spend their working hours, anyone would default to prospecting mode, making cold call after cold call and experiencing rejection. To reap the benefits of the tactics outlined in this book, you'll need to follow a few guidelines to ensure you make the time for the right activities. First, practice time blocking. Proactively place a hold on your calendar for the regular days and times when you'll be making these proactive telephone calls, preferably in ninety to three-hour time frames. Second, do the math to understand how frequently you need to be making these phone calls to close one deal. Third, put your goals on paper in an individual business plan. Include your goals, strategies, actions, potential obstacles, and personal development.

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Goals

List things like your revenue targets, the number of new accounts you plan to acquire, or the total compensation you hope to earn for the year as a result.

Strategies

Include ideas like specific accounts you will aim at, new geographies or verticals that are growing, or new modes of connecting with prospects.

Actions

What specifically will you do? This could be a dedication to time-blocking, a goal for the number of calls made per day, or a set number of visits you will make to a particular market.

Obstacles

Proactively plan for the challenges you will encounter. You probably know what they are, so it's better to list them and problem-solve for ways to mitigate them.

Personal development

Part of staying at the top of your game is investing in your personal development, such as through conferences, training, or reading. Planning for this not only re-energizes you personally but also sharpens your skills and increases your success.