This month’s article from the BC Wood newsletter…

BC Wood newsletter

Continued from Wood Connections, August, 2018

Want to Increase Sales
(Without Increasing Sales Time and Effort)?

By Neil Godin

Introductory Note:  Thanks to a long and enjoyable relationship with BC Wood, FPInnovations and several industry associations I’ve become something of a specialist in the wood products industry. I’ve worked with many companies in many sectors – and now it’s a pleasure to share some of what I’ve learned and taught through the Wood Connections newsletter. I hope you find this article helpful, and I welcome your feedback at ng@neilgodin.com.  Meanwhile, enjoy – and I hope we connect again next issue.

My marketing and sales coaching clients are always looking for ways to increase sales – without increasing the time they spend selling. If you’d like to do the same, pull in your chair and let’s take a close look at the secret to doing just that.
First, here’s the secret, right up front: The key to increasing sales – often quickly and substantially (and without increasing the number of leads, or the amount of time you or your sales people spend selling) – is to increase your sales closing ratio.  (As you probably know, your closing ratio is simply the percentage of your quotes and proposals that turn into sales.) What you may not know is how easy this can be.

First, Let’s Play with Numbers

To illustrate let’s play with some numbers. If you sell log or package homes, your average sale will be much higher than someone who creates custom furniture, but let’s just say your average sale is $5000.  And let’s say that you present six quotes per week – and that you close two sales – giving you sales of $10,000 per week.  In this example you would have a closing ratio of 33% (one sale for every three quotes).  If you multiply $10,000 a week times 52 weeks, it would mean you generate sales of $520,000 a year. Now, let’s say that you’d like a substantial increase in sales without spending more time marketing and selling. No problem. Just set a goal of doubling your closing ratio.

More sales without more marketing and sales cost, time and energy!

Okay. Now look at what happens when you double your closing ratio, from 33% to 66%.  Now you still produce only six quotes a week – but – at a 66% closing ratio this means you make two sales each week instead of one. You have doubled your sales with no increase in your marketing and sales cost, time, and energy. That means sales of $20,000 per week times 52 weeks for a new total of $1,040,000 per year. (And you’ve broken the million-dollar mark. Hmm. Now we’re getting somewhere).

How can you do it?  With lots of magic, but no tricks!

I’m not saying that you should reduce the time you spend selling. As I’ve said before, another way to double your sales is to double the time you spend selling (imagine what could happen if you did both!!). My point is that raising your closing ratio is a relatively easy way to boost sales. There are no tricks to doing this, but the results can be startling, if you pay close attention to each of a series of eight key steps, as follows:

My Top Eight Tips for Raising Your Closing Ratio

1.  The first key to success is to begin with the end in mind

As Stephen Covey says in his book, “The 7 Habits of Highly Effective People,” it’s a lot easier to achieve your goal if you begin by having it clearly in mind. So make up your mind – right at the start – that you will close just about every sale to qualified prospects. (When you shoot for a hundred percent, 66 percent looks a lot easier.)

2.  The second key is relationship building.

Make sure that you and anyone you work with answers every phone call with their first name. Whenever you speak to a prospect, introduce yourself; ask for their name; write that name down, and use it often. (I recommend wearing branded clothing – with names embroidered (or name tags), to make it easier for your prospects and customers to remember your name and/or the name of your installer or salesperson.) Show genuine interest in your prospect’s needs, wishes and ideas in regard to their project (and ask and listen for clues to what they worry about, or where they hurt in a way that you can help). Be “conversational” instead of “quotational,” as I like to say. The key point here is that even if the prospect is not a good fit for you, or isn’t qualified to buy, they can still join your ever-growing army of “sales ambassadors” – people who have dealt with you; fell in love with you; and can’t help but talk enthusiastically about you to their friends.

3.  The third key is qualifying

As you know, qualifying means asking questions which will help you determine if the prospect is “ready, willing and able to buy now.” You have to ask your qualifying questions in a distinctly helpful way – helping the prospect get clarity on their needs, budget and time frame. If they’re not qualified…not ready, willing and able to buy…then offer to keep them informed with your newsletter and email bulletins (this is called “drip marketing”) but don’t consider them a candidate for closing. When asked for a price, provide a ballpark estimate, and say you will be happy to provide a more detailed quote as they get closer to their time frame, and so on. If their budget doesn’t fit for your product or service, research all the alternatives in your market so you can refer them to a provider who will be a great fit for them. Don’t worry about losing a sale. Focus on creating another “sales ambassador.”
Special note #1: If a prospect is qualified in terms of their needs, budget and commitment to getting the work done – but are not ready to move forward immediately – then “do” spend time with them, “do” invest in the sale by doing a design consultation; writing a proposal and so on. Then try for a “preliminary” close of the sale – by asking for a small deposit to cover ongoing revisions they may wish to make before they are ready to finalize the sale.  This can get your prospect “off the street,” so they are no longer shopping around among competitors, because they have made a commitment to you. (Remember: “No cash = No commitment”). This prevents them from falling into the hands of competitors who won’t treat them as well – while helping to ensure that you ultimately get the sale. This will mess up the calculation of your sales ratio to a degree, because you can’t count the sale as closed until they finally sign, but in the end it helps you maintain a higher level of sales overall – and it will raise your closing ratio as well. (My rule of thumb in calculating your closing ratio is only to count quotes and proposals made to prospects who are qualified to buy in the short term, when calculating your monthly quotes-to-closed ratio).

Special note #2: Caution. Don’t be too quick to “disqualify” someone who wants a small job. An inexpensive first project can lead to a larger second project – once you’ve seen the scope of their potential work during your design consult – and after they get to know you and the quality of your work (and your word). Here’s another of my many mantras: “The biggest source of new business is old business.” (Even if they don’t do a second project, if they’re delighted they will become another member of your “army of sales ambassadors”).

4.  The fourth key is to make sure you are perceived as a “trusted advisor”

All value-added wood people are consultants (advisors and problem solvers) by definition. Without talking down to your prospect, make it clear that you are an expert in your field. Do this by asking how much they know about aspects of their purchase…and offering to clarify, edify and expand their knowledge. (BTW You can neutralize sales resistance by saying things like, “If you’re comparison shopping, Pat, there are questions you will want to ask to make sure you’re comparing apples to apples. For example…” This actually reduces the chances of their shopping around, because you give yourself an opportunity to demonstrate your expertise, and by so doing, you may create well-founded concern in your prospect about buying from anyone else.) Also, be sure to gather and share any third party evidence that highlights your expertise and the fact you can be trusted. Any media coverage you’ve had…testimonials from grateful customers…evidence of your credentials…your unconditional guarantee…An A+ rating at the Better Business Bureau…references from you’re A-List clients…a genuinely helpful, informative website, and so on.

5.  The fifth key is “Repeat and Referral Marketing”

When you are selling to a repeat customer, closing your sale is virtually certain. So. It is critical that you stay in touch with present and past customers. Make a point of noting other solutions you offer that would benefit them, and when you call to check on their satisfaction (and deal with anything that may need attention), ask if they would like some ideas and an estimate on this additional work.
In terms of referral sales, ask questions like, “Pat, has anyone shown interest in your XYZ?”And…“Who should I be talking to?”And…” Could I ask you to introduce me (or advise them that I’ll be calling) so I can avoid bothering them with an unsolicited sales call?” Consider offering incentives like a “family and friends discount,” or a “while we’re in your neighborhood” special offer (are you using door hangers with “in your neighbourhood” special offers? How about lawn signs?). Think hard about ways you can stimulate referral business. And when you make a referral sale, be sure to say “thank you” with a special gift.

6.  The sixth key is controlling communication with your prospect

Over and over I hear the same tale of woe…when clients say they’ve been dumped by a “perfect” prospect who is no longer returning their calls. Tragically, this happens when they thought a sale was absolutely certain. Why does this happen? Usually because they prepared a quote or proposal; sent it by email – then followed up with (you guessed it), a “follow up call.” Making follow up calls is a normal, standard, everyday procedure for business owners and sales people – and it is an absolutely disastrous practice.
Why? Because to you, a follow up call is just good business – but to your prospect it may be an annoyance (“Why is she bothering me…I just met with her two days ago?”). Instead, stay in control of communication. Do this by never leaving one meeting or call without setting up the date, time and agenda for the next one. In other words, make “appointment calls” instead of unplanned “follow up calls.” And stop sending quotes by email. When you do so they are often used to try to get a better price elsewhere – using your expertise – and your time and effort. (In other words I urge you to stop giving free gifts to your competitors.)

7.  The seventh key is avoiding sticker shock

Many a sale is lost – and a closing ratio is lowered – because the prospect suffers sticker shock when they receive your quote. Solution: Don’t do the numbers on your own. Do everything you can to learn what the prospect hopes (or can afford) to spend, while you are with them. This can be as simple as flipping through iPad images of similar work you’ve done for others; noting the price range, and asking if that price range is in their ballpark. Then, it is also important that you present your quote or proposal in person (live or by telephone, Skype or Join.me), so that you can see and hear their reaction, and respond immediately to any concerns. If you simply email and then make a follow up call, you may literally be setting yourself up to get dumped – and down, down, down goes your closing ratio.

8.  The eighth key is closing effectively

When your prospect is saying “yes” to each element of what you’re proposing – because you listened hard, and made sure that their needs, wishes and hurts were addressed – you can assume that they are ready to buy. That’s the time to “assume the close,” and ask “how” they would like to move forward, not “if” they want to buy. For example, “I know you like finish “X,” Pat, but you’ve looked back at finish “Y” a number of times…which one are you going to go with?” (Or, “I think “Y” would be a perfect choice,” etc.”(Or, “Okay, Pat, Let’s get a deposit so we can this into the production schedule…” or, “All I need is a deposit to get this into the production schedule…would you like to use a credit card, or would you prefer to use a cheque?”) In many cases this will result in a closed sale, here and now. But there will be times when your prospect will interrupt, saying they’re not sure about something. No problem. Take the question seriously; explore the issue; find an acceptable solution, then go back to closing. (The closing technique I described is called “the alternative close.”)

Special note #3:  If they say, “We’ll have to think about it,” offer to help.  Think back to your discussions. Was there something that bothered them (budget, timing, scope of the work) that wasn’t fully resolved?  Ask if that’s their concern, and do all you can to resolve it now. (As you know, the main concern is usually budget…if budget is a major hurdle, offer to start with a smaller project, or redesign their project with fewer bells and whistles.)  If they go off to “think about it” on their own, you may never get them back – and (of course) your closing ratio will suffer – along with your feelings.

I hope you find these tips and strategies helpful. Don’t hesitate to contact me if you’d like more detail or have questions about any one of them.  And, we’ll see you next month.
NG

Ps – BC Wood is offering a limited number of in-depth marketing assessments at a significant discount in order to encourage wood product manufacturers to use this service for planning your growth. I’m one of the service providers who conduct these assessments.  Please give me a call if you’d like to know more. (You can reach me at 604.888.4570 in Metro Vancouver, or 1.800.IDEA (4332), toll free – or email ng@neilgodin.com.)

About Neil Godin

Neil is a Vancouver based marketing, sales and leadership trainer and speaker. In a career that spans more than 35 years, he has worked with companies and organizations of all sizes and kinds, but in recent years has focused on the value added wood products industry.

Neil has worked with more than 50 wood product manufacturers across Canada (including architectural woodwork; wood windows and doors; flooring; kitchens/cabinets; molding; factory built homes; closets and organizing systems; timber frame and log homes; trusses, industrial timber products; wine cellars and re-man plants). He has also served larger organizations including Fletcher Challenge, Tolko, BC Wood, FPInnovations, AWMAC, EB Eddy Forest Products, and many others.  As a speaker he has addressed more than 300,000 people from coast to coast in Canada and the US. – and he is the author of “Selling in the (Comfort) Zone” a comprehensive guide to marketing and sales for business owners, available on Amazon.  Neil is available for private coaching and team training on customer service, marketing, sales, and leadership and team building.

© 2018 Neil Godin International Inc., Vancouver Canada

Continued from Wood Connections, July, 2018

Could the Terrible Reputation of the Trades
Be Your #1 Business Opportunity?

By Neil Godin

This month let’s look at how delivering truly exceptional customer service could help you build sales and profit.

In my work as a business coach and trainer, I’ve come to believe that delivering exceptional customer service will give you the last sustainable competitive advantage there is. If your entire business is focused on making certain that customers are totally satisfied – if that’s your “brand promise” – and you take the steps necessary to deliver on that promise – then you will earn a huge advantage over competitors who may promise the world, but often don’t deliver.

There’s more.  If your wood products company is involved in the trades (as most are), emphasizing customer satisfaction will give you an even greater advantage.  Why? Because, as we all know, the trades have a terrible reputation. They are notorious for…

  • Over-promising and under-delivering
  • Standing customers up when they’ve booked time off work
  • Showing up late (or not showing at all)
  • Not communicating
  • Taking longer than expected
  • Leaving a mess
  • Charging more than they estimate or quote
  • Doing work that isn’t right the first time
  • Being slow to complete re-work
  • And more!

Every one of these shortcomings is readily preventable, of course. But exceptional service is a competitive advantage because most tradespeople shrug off customer complaints.  They say chronic mistakes – product quality and service errors that drive customers crazy (think “Cable Guy”) – just go with the territory. If you make a determined effort to reverse this reputation in your business, you “will” differentiate yourself from the crowd – and you “will” earn a competitive advantage.

The benefits of earning a “service advantage”

Making success through total customer satisfaction your company’s guiding purpose will pay off in several key ways:

  • You take advantage of the most effective (and least expensive) marketing strategy in history – the combination of word of mouth (and what I call “word of mouse”) advertising, and repeat and referral business.
  • Repeat customers come back to you pre-sold, and ready to buy.
  • New customers who are referred or introduced to you – either by present customers or others in your network – also come to you pre-qualified and pre-sold.
  • They’ve been told about you in detail. They know the way you work. They know about your pricing. And, because they know your reputation, they typically come to you “ready, willing and able” to buy now.
  • This shortens your sales cycle; raises your sales closing ratio (dramatically) – and (of course) increases your sales!
  • You can leverage customer satisfaction by nurturing and rewarding repeat and referral business (e.g. by staying in touch, and perhaps becoming famous for special touches like delivering surprise “thank you” gifts).
  • This approach can save you a lot of money in advertising (people trust the word of a friend far more than any ad), and your advertising will also become more effective – because of your great and growing reputation.
  • Perhaps most important this approach ensures that you have a loyal and growing customer base – essential when the economy (inevitably) slows down.

Key requirements for delivering exceptional customer service

Earning a service advantage isn’t easy, of course. It requires…

  • Making a head, heart and gut commitment to Continuous Improvement (CI) in every aspect of product and service quality
  • Building your leadership and team-building skills (in order to get people – including hold-outs and cynics – working with you, and with each other)
  • Making certain that every team member understands the connection between their minute-to-minute work, and its effect on customer satisfaction; the success of the company, and, as a result, their own career
  • Conducting detailed “Customer Experience Planning” exercises for every touch point in your business
  • Conducting post mortems to learn from errors and prevent recurrence
  • And more!


“Where do I start?”

While every situation is different it all begins with deep soul-searching on your part. Ask yourself – and your team members – and (most
important) your customers – how they rate your company now, in terms of customer service and satisfaction – and ask for their specific ideas on how you could improve.

Then pull a special meeting together (you’ll need more than one), and talk about the idea of pursuing exceptional customer service as the foundation of your business building strategy.  Identify the obstacles you face, and brainstorm ways to turn every obstacle into the opportunity that it contains.
Instead of endlessly discussing ideas and possibilities, try to capture the outcome of each discussion in one or more “action plans” – written plans that set out “who” commits to do “what” by “when” in executing the initiatives you agree on. (If you want to try this email me at ng@neilgodin.com, and I will send you a copy of the Action Planning Worksheet that I use).

A competitive edge that can’t be copied

While everything else you do can be copied by competitors, truly exceptional service can be seen, heard and felt – but can’t be duplicated. Why? Because it comes from deep inside – and it takes everything we’ve got as people. It means consulting with team members instead of dictating to them, so they feel respected and valued. It means correcting without criticizing when mistakes are made (attacking the problem, not the person) – so your people remain focused on producing top quality work – rather than nursing resentment over the way they’re treated. It takes extra time for quality control checks; for communication with clients to make certain you have accurate delivery addresses and detailed contact information (including back-up contacts).  It also takes a brilliant recovery when mistakes are (inevitably) made, and much, much more.
But imagine what could happen to your business if every team member shared the goal of turning each new customer into yet another “sales ambassador.” Hey, not only would it be good for business, it could give you a whole new outlook on life.

See you next month.

Continued from Wood Connections, July, 2018

Want to ramp up your sales?
Ramp up your marketing and sales activity!

By Neil Godin

First a reality check…

Do you recognize this scenario? You need more sales. So, on your way to work you say to yourself, “This is the day.”  This is the day you’re going to call to follow up on two or three big quotes – and call one or two of your best leads.  But there’s a problem. When you arrive at the shop you’re greeted by a call from a frantic customer who wants a change that it’s too late to make. That fire fight goes on for almost two hours. Then there’s a problem on a job site that demands your personal attention. Then a call from a family member.  Then, suddenly, it’s Noon. And no sales calls have been made. The afternoon is pretty much the same. You’ve got to do a quote that’s already late. Then catch up on urgent emails. Then more trouble-shooting with clients. Then it’s time to call it a day – another day without making those calls.

If you see yourself in this scenario, you’re a typical business owner. But you probably don’t want to be typical. You’re probably sick of the hills and valleys in your business, and you really want to “consistently” generate more sales. So, let’s see what we can do to change this picture.

Here are my Top Ten Tips for ramping up the time you spend on marketing and sales:

1.  Put up a marketing and sales wall calendar. 
I suggest a wall calendar because it makes your plans and events visible.  If you tuck them away in your cell phone, PC or laptop, there’s a danger that they’re “out of sight, out of mind.” But if you post all your plans and events visibly (and preferably publicly, where other team members can see them as well) you are “much” more likely to act on them.

2.  Start ‘time blocking.’
Schedule blocks of time to work on marketing initiatives. Treat these as “appointments with yourself.” Also make appointments with yourself to spend X amount of time each day making sales and sales networking calls. Tell others when you’re time blocking and ask them to cover for you.

3.  Make sales calls daily. 
Commit to making a minimum number of sales or sales networking calls each and every day. Many of my clients make a ritual of making a minimum of at least one sales or sales networking call – each and every business day. Most make an appointment with themselves at 11 a.m. each morning to make these calls.  (11 a.m. has proven to be a “best time” to make calls. The morning rush is usually over, and it’s too early for lunch, so it’s a good time to make contact).

4.  Plan for Murphy. 
Murphy’s Law says anything that can go wrong will go wrong. But you can defeat Murphy if you plan for him. The idea is to leave empty spaces in your planner to handle the unexpected. If you fill your calendar with appointments and tasks, you are certain to end up short of time – and the first thing to go will be the time you thought you were setting aside for marketing and sales.

5.  Don’t fill your schedule with ‘To-do’s.’
Enter only ‘Must-do’s’ in your schedule – the tasks that have to be done by a certain time, and tasks that you have committed to doing for clients and others. (You can keep a to-do list, of course, but put it away somewhere, and only look at it when you’re adding to it. Otherwise it can overwhelm and depress you.)

6.  Hire a marketing assistant.
Successful realtors and lawyers do it – and so can you. Imagine what it would be like to have an assistant who is super-organized, detail oriented and net savvy – someone who could help with your schedule; take on many of your tasks – and handle your social media and blog. (These magic makers are available; you can find them via online recruiting services, and through college and university Co-op Education Programs – and through networking. (Give this one serious thought – it could be life changing.)

7.  Groom a right arm person for trouble shooting.
Plan to do more intensive coaching and delegation with a person who can take on more of the customer/project trouble-shooting roles that usually fall to you. In addition to freeing up time, this can be liberating in many ways (e.g. you’ll be able to go on vacation without worrying about things falling apart while you’re away).

8.  Reduce “The Screamin Ree’s.” 
Clearing the decks for marketing and sales action almost always requires that you make “huge” improvements in getting things done right the first time.  When you don’t the Screamin Ree’s kick in – the re-work, the re-pair, the re-visit, the re-placement, the re-moval of new work from production while you re-make the old work, the re-installation, the re…  You get the idea.  Nothing less than a quality control blitz is needed – with double check systems, one-page SOP’s (Standard Operating Procedures), visual aids that spell out Do’s and Don’t’s at every work station – and more!!

9.  Don’t waste your personal “prime time.” 
Make the most of your personal “prime time.”  Use your most productive time each day to do your most important work. If you’re like many others that means early morning. If so, don’t waste that time opening email and other low priority tasks. Instead choose a valuable task the day before and start your day be getting it done.

10. Put off procrastinating.
If you procrastinate, don’t worry about it – just put it off. Tell yourself, “I’ll procrastinate later.” Then do “not” try to get a big job done all at once (that’s the usual reason we procrastinate).  Instead just take one small piece – perhaps making a single telephone call – that you can easily do “now.” Keep doing this and that huge task will be done. And you’ll feel great!

Based on many years of real-world experience, I can tell you that putting just a few of these ideas to work can help you clear your decks for action – and help you ramp up your sales!

Hope you find the tips helpful.
Neil

Ps – If you have questions or need ideas on how to implement any of these strategies, don’t hesitate to call me at 1.800.563.IDEA (4332) in Vancouver, or email me at ng@neilgodin.com.

© 2018 Neil Godin International Inc.