Understanding the science of selling – Part II
In Part I of this article, we defined the importance of the Science of Selling (SOS), as well as the steps salespeople must take to develop an understanding of their SOS.
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In this second and final part of this article, we will discuss the use of the law of averages, the role of work ethics and finally why sales success if it is based on science, not luck.
Use the Law of Averages to your advantage
The Law of Averages is no different than the Law of Gravity—they are LAWS and they will be true! What you need to do as a professional salesperson is find out all of your numbers; your closing average and the average sale amount and figure out how much you earn per closing attempt.
It is imperative to understand that this is actually how you are paid.
You must understand that every action, every sales activity, has its own value. That’s why it’s important to always ask the question: “Is this sales interaction or the next step leading me towards a sale.”
You must understand that you get paid when you perform each one of these sales activities no matter what the outcome of each individual sale.
In our hypothetical sales situation from Part I, Akosua, the salesperson, must understand that at that critical juncture of closing the sale, GH¢400 is not at stake, not at risk. When she is attempting to close the sale, NOTHING is at risk. If the prospect says "No," Akosua STILL makes GH¢80!
If the prospect throws Akosua out the door, Akosua still makes GH¢80.
Equally important, Akosua must realise that if the prospect says "Yes," and buys the product, she will still make GH¢80 and NOT GH¢400.
Usually, professional salespeople go only as far as to get some vague idea of their overall closing average and they stop there. They then use this closing average to set their goals and base their work.
Consistency in work ethics
The problem with this is that the closing average is the end result of an entire sales process. However, to achieve consistent outcomes, you must have consistent input.
Your work ethic: the number of sales calls, the number or closes, the number of appointments, all sales activities must all be equally consistent.
When salespeople go up and down and reach one week and break the next, it is not due to bad luck, it is the result of an inconsistent work ethic.
Typically, salespeople set their goals based solely on the number of sales as per their closing average. Therefore, the salesperson usually pays no attention to the work ethic behind each sale.
As an example, a salesperson with a closing average of 20 per cent sets a goal to make five sales. He goes out and during the week he achieves his goal of the five sales and he does it by only making 12 presentations.
The salesperson closed five sales out of 12 closing attempts.
When this happens, the salesperson jumps up and down feeling grateful for having such a good week.
However, the truth is that this salesperson's averages say that he must make five closing presentations for every one sale earned.
Therefore, if he wants to make five sales, he should make at least 25 closing attempts. You see, five out of 12 is a 41.66 per cent closing average and though it may feel good, his closing average cannot support that.
In fact, since this salesman should have done 25 and only did 12, he is in-the-hole 13 closing attempts. He is behind on the law of averages by 13 closing attempts. Now, what do you think will happen to this salesperson over the following week or two?
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Those 13 closes are going to catch up with him to bring his closing average back to 20 per cent.
That means he must go through a period of no sales and when that happens the salesperson believes he is in a slump or he is just having bad luck; but it is not a slump and it has nothing to do with luck.
It is the result of his or her own action (rather inaction) and is exactly why the under-trained salesperson lives on a mediocre bumpy ride of fluctuating income.
It's Science, Not Luck nor Grace nor Black Magic
During a recent sales training workshop for a client, a salesperson concluded that a particular good salesperson was hitting his target consistently because of ‘Grace’. The fact is, in order to become successful at selling, you need to rise up above the level of the wishful thinker and learn your SOS.
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As a professional salesperson, you need to figure out what you earn for every sales activity in your sales process.
Then use those numbers as goals. With our salesperson, Akosua, for example, we know that she earns GH¢400 for every sale she makes.
When she sets a goal to make GH¢2,000, does she set out to just make five sales? (GH¢400 x 5 =GH¢2,000) NO. No.
If Akosua is a true professional who understand SOS, she knows that she actually earns GH¢80 for every closing attempt, regardless of the outcome. Akosua forgets about the number of sales and sets out to make 25 closing presentations (GH¢2,000 /GH¢80 = 25).
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She makes sure she completes 25 closing attempts regardless of what happens. Akosua realises that she will make her goal of GH¢2,000 as long as she completes the 25 attempts. Akosua knows that if she completes those 25 attempts every week, week in and week out, that she will consistently earn close to GH¢2,000 earn every week.
She does not worry about who says yes or who says no.
She does not worry about the small sales or the big sale.
She does not have anything to worry about or to wish for and she does not depend on luck, grace or black magic. Akosua understands that she has nothing to lose and nothing to risk. Akosua is a sales scientist!
Conclusion
Successful salespeople know their averages and numbers. They track them monthly through their pipeline activities. As a result, they are better at forecasting their earnings and above all enjoy SELLING.