Sales Blog with Professional Sales Tips

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Answer 1: He was fired two years ago.
Answer 2: She died almost five years ago.
Answer 3: He was demoted about three years ago and is no longer a decision maker for your products and services at that company.

In the spirit of networking, a sales pro called me recently and wanted some sales tips on three employees at a company I had worked with recently. He was prospecting and had three names he had identified as decision makers. As he read their names I responded with the answers enumerated above.

“…asking for a dead person is not the way to start.”

Clearly he had the right intent. He was doing research before making an initial contact with a prospect. He had found some names and was calling me to get more data. But how could he have been so far off base? Can you imagine how warmly he would have been received if he had contacted the prospect asking for these people before I was able to set him straight?

Sales Tips: What Went Wrong?
The problem was that he had used one of the old-school lead databases to get names of decision makers. It has been my experience that the data we get from these sources can be outdated and inaccurate. I’m being too generous - make that virtually worthless at times. My networking friend had provided yet another example of how unreliable these information sources can be.

I believe we can do better than these old-school lead databases that employ highly disinterested and low paid call center employees to retrieve information and sell it to you or your company.

Sales Newsletter: There are Better Ways
Prospects are demanding that we know more about them when we contact them. We need our information to be current and accurate. There are some great tools available to us that can provide current and high quality lead information. These tools have been covered in this sales tips blog before. Please see “Further reading” below. The costs for the leads they provide can range from very reasonable to zero.

Business Networking: Ryze, LinkedIn, Plaxo
Directories of Companies and Business Professionals: Jigsaw, NetProspex

Sales Blog Wrap-Up
Calling a prospect and asking for a dead person is not the way to start. We can do better.

Further reading:

• Jigsaw CEO Tells Me Why You Need His Website
• Interview with Gary Halliwell, CEO of NetProspex
• Tips for Sales: The Business Social Networking Landscape is Changing Radically

To receive this sales blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Barack Obama and John McCain have a commanding presence. If they didn’t they wouldn’t be U.S. presidential candidates. Are they making all the key decisions regarding their campaign? In large sales, does one decision maker, operating alone, ultimately make the decision to buy from us?

“They aren’t seeking agreement because they are kind or democratic.”

Sales Tip: Fear Factor
Fact: There is rarely only one decision maker in a large sale. I know we’ve all been given sales tips about the ultimate decision maker. But there is a variable that keeps all the decision makers in play right up until that big order is finally placed. Fear.

Don’t Confuse This with a Democracy
The person in the corner office likes to know he or she is supported in their decision to make a substantial purchase. They aren’t seeking agreement because they are kind or democratic. They want concurrence because they share a common human emotion, fear. They are fearful of making a bad decision and wasting corporate resources. They have to answer to someone and it sounds better to be able to say, “We decided to…,” if things don’t work out so well in the end. They don’t like being fired any more than the next person. Those overpaid high visibility management positions aren’t easy to replace. Just ask Carolyn Kepcher.

How to Sell Big Orders
While there is an individual who has to give the final authorization for a large purchase, they work with their official or unofficial team of decision makers, recommenders and information gatherers right up until their pen hits our contract. We have to keep selling to that team until the order is in hand.

Further reading: Decision Makers, Vertical vs. Horizontal

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Bad sales skills die slowly don’t they? One of my poor sales skills when I was younger was to shotgun my prospects and customers with sales and marketing brochures by snail-mail and E-mail. Want to know something I always knew but never admitted to myself? All of that activity never helped my sales one bit.

“…reminds me of the guy I know who hasn’t exercised in thirty years but wears the best looking and most expensive pair of Nikes on the planet.”

Why don’t brochures work?
They don’t work because we have two primary considerations when it comes to the most effective ways of selling: relationship and information. We need to create a partnership with our customers and accumulate as much data as possible about them in the process. How does a printed piece of marketing collateral or a beautifully crafted PDF file E-mailed to a decision maker help us in either of those two areas? We’ll get plenty of people doling out sales tips and sales advice in our careers about why we should launch an avalanche of marketing materials. They’re not providing good sales help.

Marketing Brochure Cleanliness is Next to Godliness
Snail-mailed collateral is thrown away and buyers delete E-mailed marketing propaganda if it isn’t caught by the company’s spam filter first. Consider for a moment how little marketing material actually hits the eyes of a decision maker. Virtually zero percent. Our customers treat this stuff like Anthrax. Besides, if customers want information guess where they look first? Your web site.

Why do we keep doing it?
We keep sending out a tsunami of sales brochures because it’s something we’re supposed to do and it makes us feel good. At least we’re doing something. It reminds me of the guy I know who hasn’t exercised in thirty years but wears the best looking and most expensive pair of Nikes on the planet. It somehow makes him feel like he’s doing a positive thing regarding his health.

So doctor, what is your sales advice?
Stop wasting time on ineffective sales materials and focus on what makes a difference. The difference is all the activities involved with relationship building and being a student of our prospects and customers. That’s the best sales tip I can give you when it comes to collateral material.

Related information: Collateral Materials, Sales Brochures, What a waste!, A #1 Proposal Tip

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

[I had the opportunity recently to ask Jim Fowler, CEO of Jigsaw, some questions about his company. Jigsaw is a fast growing company with interesting concepts regarding leads that will be of interest to many sales professionals.]

1. You are the CEO of Jigsaw. What is the history of Jigsaw?

Jigsaw was founded in late 2003 with the mission of mapping every business organization on the planet. The concept was that salespeople could work together to build a gigantic shared Rolodex.

Jigsaw launched in late 2004, has raised $18M in venture funding, currently has ninety employees and has over 500K members (mostly sales professionals) who build and maintain the collaborative database.

2. Who do you consider your biggest competitors and what are the differentiators?

Jigsaw competes most directly with traditional data companies like Hoovers and InfoUSA. Jigsaw differs from them in several key ways:

They build and maintain their own databases. We believe there is no way a few dozen or even a few hundred employees can compete with an army of 500K motivated salespeople who build and maintain the Jigsaw shared Rolodex.

We have many more contacts and they are much better. Specifically, every single Jigsaw contact is complete – including email address and phone number. Seventy-two percent of Jigsaw contact records have a direct dial phone number. Virtually none of our competitors’ records have either an email address or a phone number.

We give our company data away for free. Members can download up to 50K complete company records at a time in the format of all of the major CRM systems.

3. As a sales professional what are some of the compelling reasons for me to use Jigsaw for leads versus more traditional ways of lead attainment such as leads lists and networking groups?

Jigsaw’s data is not only complete, but it is also much fresher than any other lead list. Jigsaw’s 500K members constantly clean the data, updating records and graveyarding dead ones.

Jigsaw is, in essence, the largest networking group around. There are currently almost nine million complete contact records on Jigsaw.

In essence, Jigsaw is doing to the traditional data companies what Wikipedia has done to Encyclopedia Britannica.

4. Is Jigsaw responding to a change in how professional salespeople network and acquire leads?

We prefer to think that Jigsaw is changing the way sales professionals network and acquire leads. Never before have leads of this quality been so easily obtainable. We believe the increase in transparency of data will fundamentally change the way salespeople sell. We believe that it will no longer be about just getting the data, but about how to rise above the noise. We believe salespeople are going to have to become better marketers in order to get a prospect’s time.

5. What is your sales demographic and industry demographic? In other words, are you marketing Jigsaw to certain types of sales professionals that operate in certain industries?

Technology sales professionals were the early adopters, but now sales professionals from all industries and company sizes use Jigsaw. We offer a Jigsaw Team product that allows entire sales teams to use Jigsaw. We have over 600 of these corporate accounts.

Members use Jigsaw for two main purposes – to find prospects and to map organizations in order to understand the buying influencers for deals farther in the pipe. Our market must almost always perform one or both of these tasks on a regular basis.

We also sell our CRM cleaning and maintenance services to CRM owners/administrators. This is the fastest growing part of our business.

[Thank you, Jim, for answering my questions. I think many readers will be interested in looking into Jigsaw further. Scott]

To receive this blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

[I recently interviewed Gary Halliwell, CEO of NetProspex. This company is representative of the tools and resources that are increasingly becoming available to sales professionals and are fundamentally changing how we work.]

1. You are the CEO of NetProspex. What is NetProspex and how did it all start?

I’ve been a part of several successful online business information companies (President of Thompson Financial/Intelligence Data and President of ZoomInfo) that all shared one thing in common - technology transition - which always lets you do things differently and find new ways to deliver value to an online community. The power of user-contribution and Web 2.0 blew me away as soon as I saw it. While user contribution increases quantity tremendously, the lovely chaotic creative environments of sites like MySpace lack an aspect critical to the business user. Simply put, a business user needs accurate information. Why? Because they are going to take important actions in their workday on the basis of that information.

We thought there was a great opportunity to leap ahead of the competition by solving this issue. Jeff Clewley (NetProspex’s CTO and co-founder) and I both come from backgrounds in financial electronic markets where quality is paramount because the information is used to support multi-million dollar decisions. Our experience serving business users made us very aware that success in the space was going to be dictated not just by the amount of data collected but also by the quality of the information presented back to the user. We believe the majority of the early entrants were more Web 2.0 than Business 2.0 and have lacked this appreciation. NetProspex is a B2B sales contact exchange marketplace built on the premise that sales people need accurate content so they don’t waste important time in the sales process.

Fundamentally, Jigsaw relies on the user community to “clean” their data. We don’t think that makes sense. Sales people don’t want to spend precious hours fixing problems in a sales contact database; they have a job to do and that is to make money. NetProspex takes responsibility for cleaning data completely off the shoulders of users. Our trading system is designed to be quick and easy so users can upload contacts in less than 1% of the time it would take on Jigsaw. Then we put the data through rigorous quality processing, so that only validated contacts are added to the system. The result is that new contacts added to NetProspex are 100% validated when they are added to the database.

Before a contact is made available to users it undergoes a validation process that is the most rigorous in the industry. And we don’t stop there. Contacts are assigned an accuracy rating based on their age between 1% and 100%. When we add a contact to the database, it is 100% validated. Then, as the contact ages in the database we know the probability of that person being in that role decreases. This reflects the issue that people turn over at companies, and any group of contacts will get progressively inaccurate. We know this happens at an average rate of 20% per year, so we provide an accuracy rating to the contact that reflects the average accuracy for contacts as they age in the database.

Anything less than 50% is simply thrown out. Over time we continuously re-validate and re-score each contact. Because contacts are a perishable commodity, like fish, they go off after a while, so we purge all contacts more than two years old.

Yes, technologies like NetProspex provide a definite evolution of traditional sales processes, improving and scaling those processes to the point where information useful to business is becoming more network-like, rather than created by a single source. To illustrate, cooperation in the sales environment has always happened at a human level. If you knew someone who could help you get into an account, you’d probably ask them for the name and contact of that person. Executive directories grew out of this fundamental demand. The change is that the community is clearly prepared to share certain types of information like contact information, and the common benefit is that we can now start to see more deeply into a wider array of target organizations and find mid-management decision makers. That’s a big change and benefit to a sales person that speeds up the sales cycle enormously.

We cover a very wide range of industries as our customer is basically anyone who needs to find and reach another business person or group of business people. That is a fairly broad user base when you think about it. We have concentrations in B2B industries such as technology and business services, but we also range into healthcare, financial and manufacturing. The sales demographic is very broad and includes most transactional B2B sales environments where the sales person simply needs a targeted, accurate contact name.

[Thank you to Gary Halliwell, CEO of NetProspex, for answering my questions. If you are currently using NetProspex please feel free to provide us with your review of the site and its benefits by commenting on this post.]

Please tell your business associates about Scott R. Sheaffer’s Sales Tips and Sales Advice Blog. To subscribe: <click here> to receive by email or <click here> for the RSS feed. © 2008 Scott R. Sheaffer