Grow Your Business! Focus on Customers to Increase Your Sales

1. Grow Your Business!Focus on Customers to Increase Your Sales

2. The SCORE Foundation would like to thank for showing their support of America’s small businesses by sponsoring this series. The content provided in the Grow Your Business! materials is intended as a business resource only and does not guarantee a successful outcome when applied to individual business use. To find additional resources on growing your business, visit www.score.org and www.openforum.com 2

3. A Special Thanks to Our Local Sponsors 3

4. Classroom Safety – Argosy U Emergency Exits Restrooms Please do not wander around the building! You are HERE 4

5. Classroom Safety–ComCenter Emergency Exits Restrooms Please do not wander around the building! You are HERE 5

6. About SCORE • Successful and experienced business owners and executives acting as volunteers • Free ongoing mentoring: • One-on-one • E-mail • Signup on our website – Mentoring Tab • Seminars and workshops • Resources for small business: manasota.score.org Douglas S. Cavanaugh

7. Assessing Your Business The SCORE Business Needs Assessment, it is in your packet. Download at: http://tinyurl.com/8j7fkgw It will help you assess the current state of your business in 5 key areas: • Management • Marketing • Sales • Finance • Operations Review with your mentor to help you: Decide what additional workshops to attend Develop a customized business improvement plan

8. Workshops - Business Focus Areas Customers – Impacted by All Functions in Your Business Marketing Essentials to Attract More Customers Marketing Focus on Customers to Increase Your Sales Sales Customer Service Service Delivery Improve Your Services and Gain Productivity Distribution Purchasing / Manufacturing Finance Find Ways to Improve Cash Flow and Profits Business Owners / Management - responsible for Business Performance

9. Let’s Get Started Briefly tell us about you: • Your name • Your business (30 second “elevator” speech) • Do you already have a SCORE mentor? • What you hope to achieve during and after this workshop Katrina Markoff 9

10. During this workshop we will discuss: • How to choose effective distribution channels • How to evaluate your sales process • Who should be on your sales team • Strategies to motivate your sales team • Potential for using Customer Relationship Management (CRM) tools Marta E. Maxwell 10

11. Evaluating the Needs of Your Business 11

12. Evaluating the Needs of Your Business Is it Right For You? Not every marketing strategy or sales tool is right for every business. Ask: • What strategy approaches might work for my business? • Will this help achieve my goals? • Will this reach my target customer(s)? • What are competitors doing? North American Industry Classification System (NAICS) • Does this fit my budget? • Do I have adequate staff? 12

13. Expanding Your Distribution Channels to Better Reach Your Customers 13

14. Expanding Your Distribution Channels Understanding Distribution Channels Distribution channels are how your product or service gets to the end user. Expanding distribution channels helps grow your business: • Builds brand awareness and recognition • Multiple channels can decrease risk • Enables you to reach more customers • Potential to increase profits Jennie Dundas & Alexis Miesen 14

15. Expanding Your Distribution Channels Examples of Distribution Channels 15

16. Expanding Your Distribution Channels Channel Choices As you assess distribution options, consider: • What are my customers’ needs? • How could your product/service meet those needs? • Who is my ideal customer? • How can I find more of those? 16

17. Expanding Your Distribution Channels Customer Needs Influence Distribution How do customers expect to buy? • Customers simply purchase for their use: • Online, local retail, or catalog/telephone • Customers require product support or specialized service at the time of sale / delivery: • Direct central sales or at the customer locations or field product support team after the sale • Customers buy to sell to others: Wholesale or third party drop shipping Andrew Dunn 17

18. Expanding Your Distribution Channels Research Distribution Channels In addition to your customer needs, consider: • Competitors • Geographic locations • Strengths and weaknesses of options • Barriers to entry • Unit Cost • Pricing/profit • Sales/marketing impacts • Channel conflicts • Legal considerations - contract terms and conditions 18

19. Expanding Your Distribution Channels Assess Options and Prioritize • Ease of entry • Geographic proximity • Financial goals and risks • Estimated sales volume • Competitors’ positions • Your management experience • Your staff capabilities 19

20. Expanding Your Distribution Channels Choosing and Establishing Channel Partners • Identify potential partners Credibility and Reputation Financial Stability • Establish partner relationship • Set goals • Train partner • Provide sales/marketing support • Minimize partner conflicts Marie Seipenko 20

21. Exercise 1 - Distribution Channel Assessment Using the Worksheet in your folder, fill in your EXISTING primary channel to market and then potential expansion channels Fill-in your thoughts about pros and cons of each area list below: Ease of Entry Geographic Proximity Costs Competitors’ Positions Management Experience Staffing Capabilities Marketing Needs 10 minutes to work and 10 minutes to discuss 21 21

22. Exercise 1 - Distribution Channel Assessment 10 minutes to work and 10 minutes to discuss 22 22

23. Evaluating Your Sales Process 23

24. Evaluating Your Sales Process 5 Steps to Sales Customer service is key throughout the sales process. 24

25. Evaluating Your Sales Process Step 1: Lead Generation Marketing methods to generate leads: • Advertising • Online (website, including search engine optimization, pay-per-click ads) • E-mail • Social media • Personal Networking • Client/customer referrals • Trade shows • Direct mail • Public Relations Jennie Dundas & Alexis Miesen 25

26. Evaluating Your Sales Process Step 2: Prospecting Prospecting reaches out to leads using: • Phone/cold calls Call list purchase / internal customer database • Email • Personal networking • Web social networking • Direct mail • Trade shows • Referrals What works for you now? (5 min) David Lomakin 26

27. Evaluating Your Sales Process Step 3: Contact Customer / Client • Ask Questions • Find out any initial questions / concerns to help your preparation • Listen to the customer • Qualify the prospect • Set initial meeting 27

28. Evaluating Your Sales Process Step 4: Negotiating • Know your goals • Determine customer needs • Be prepared • Determine deal breakers • Understand Risk vs. Reward • Create win-win situation Bartering? - may be an option • Build relationship Douglas S. Cavanaugh Sr. 28

29. Evaluating Your Sales Process Step 5: Closing Tactics for Closing: • Provide a solution or opportunity for the customer • Quality of the product offering • Identify significance/value of product - Emphasize Benefits vs. Features • Empathy, but working to overcome objections • Create a sense of urgency • Ask for the order AND know when to stop Obstacles to Closing: • Price may need to be negotiated • Contact is not decision-maker – and this obstacle works both ways • Product/service not needed • Buyer fears – pricing, cash flow, product won’t meet customer requirements • TimingWhat successful tactics have worked for you? (5 min) 29

30. Evaluating Your Sales Process Ongoing Customer Service Acquiring a new customer costs 5 times more than keeping an existing one* • Follow up • Resolve problems • Build relationships • Maintain customer history • Evaluate Customer Relationship Management (CRM) tools: • Salesforce (full features $$), • Zoho (full features – free for 3 users) • vtiger CRM (Open Source – Free or hosted $12/mo/user) • Get referrals/testimonials • Sell additional products/services • Stay in touch *Source: Gallup Katrina Markoff 30

31. Evaluating Your Sales Process Using Technology to Enhance Sales Customer Relationship Management (CRM): • Differs from Contact Management • History of interaction • Share information • Create reports/forecasts • Spot trends • Time management • Consistent sales process Choosing CRM Solutions: Simple and Scalable Consider Open Source solutions – Free or Low cost (but often have less support offered) 31

32. Your Sales Team 32

33. Your Sales Team Setting Sales Goals 33

34. Your Sales Team Choosing Your Sales Team • Telemarketing • Dedicated Sales Team • Manufacturers Reps • Retail Associates 34

35. Your Sales Team Match Skills to the Sales Process • What steps in the sales process are the most important for your business and why? • What skills do your salespeople need to succeed at those steps? 35

36. Your Sales Team Telemarketing Services can include: • Inbound or outbound calls • Direct sales • Lead generation • Scheduling appointments • Surveying customers • Updating lists/customer info 36

37. Your Sales Team Choosing a Telemarketing Firm • What are your goals? • Services needed • Industry expertise • Languages • Extra services (scripts, reporting) • Overseas or U.S. based • Costs (per hour, commission, setup) • Reps (tenure, training) • Performance measurement Elizabeth Perelstein 37

38. Your Sales Team Dedicated Sales Staff 38

39. Your Sales Team Manufacturers and Independent Representatives 39

40. Your Sales Team Finding Manufacturers and Independent Representatives • Trade shows • Industry publications/websites • Social networks • Ask buyers • Rep associations (find at www.manaonline.org) A good practice would be to try to build sales in the region before seeing a representative, but this is not always required. 40

41. Your Sales Team Retail Associates Retail associates can be a key differentiator for small retailer • Assess job duties • Look for personality characteristics • Enhance knowledge • Train and motivate Resource -National Retail Federation www.nrf.com/ Jennifer Behar 41

42. Exercise 2 - Sales Strategy Assessment Using the Worksheet in your folder, fill in your EXISTING primary sales strategy market and then potential additional strategies to increase sales Fill-in your thoughts about pros and cons of each area list below: Will this help achieve my goals? Will this reach my target customers? Does this fit my budget? Do I have the necessary staff? 10 minutes to work and 10 minutes to discuss 42 42

43. Exercise 2 - Sales Strategy Assessment 10 minutes to work and 10 minutes to discuss 43 43

44. Motivating Your Sales Team 44

45. Motivating Your Sales Team Creating Your Sales Compensation Plan 45

46. Motivating Your Sales Team Commission vs. Salary 46

47. Motivating Your Sales Team Compensation Factors to consider: • Sales cycle • Job duties • Tenure • Experience • Fringe Benefits • Industry standards Marie Seipenko 47

48. Motivating Your Sales Team Bonuses • Additional incentive beyond commission • Tied to individual and company performance • Put it in writing • Typically paid at year-end • Graduated levels • Keep it simple • Make it motivating 48

49. Motivating Your Sales Team Sales Incentives and Recognition Programs • May be non-monetary • Contests or compensation • Set clear goals and rules • Best for short-term results • Make it meaningful What are some of the sales compensation methods you have successfully used? (5 min) 49

50. Motivating Your Sales Team Developing Talent Training and education options: • Industry associations • Online courses and webinars • In-house training • Focus on using best practices Doug Zell 50