Calculate your budget for buying a Sales CRM Software
Have you been lately trying to finalize a CRM software for your team but unable to figure out how much should you be spending for CRM?

As Businesses differ in size and type of deal value they deal in, It is complex for you to figure out the exact numeric estimate of how much of your allocated budget you must spend for taking up a CRM. Market is filled with CRM which charges from 9 USD per month per user to 500 USD per month per user based on the feature complexity of the Software and Value add provided by the service as per the needs of the Sales Team.

But How much should you as a Sales Manager be allocating your budget for CRM Implementation within your organization?

The answer is difficult and complex! 



But Let us try to find a simple solution to it.

Get an Estimate of Cost incurred by Sales Executive doing Non-revenue generating task:

  • Get an estimated figure of the amount you spend paying your Sales Executive's Annual Salary.
  • With that, try to find your hourly cost rate of your executives.
  • Guess the average amount of time each Sales team member spends in a day doing manual entry of his sales figures into an Excel file to be shared to his Manager or to Reporting analyst who will consolidate it further for the whole team. This could be roughly around 30 minutes a day out of 8 working hours of the resource.
  • Guess the average amount of time each Sales team member spends in a day trying to search or recall or figure out some of the past conversation history with some Client documented in some random email or document which is important for his follow up call. This could again be roughly around 30 minutes to 1 hour per day.
  • Sum up both the time.

Get an Estimate of Cost incurred by Reporting Analysts doing Non-revenue generating tasks:

  • Sales Reporting Analysts doing the task of Reporting and Measurement Analyst is redundant and detrimental for their career. Most of the time these resources are over burdened with the dirty work of following up with each sales executive and getting the sales figures, plugging it in spreadsheet application and drawing pivot tables, bar charts, pie charts, line chart etc and prepare a dashboard for the Senior Management. 
  • By the time Analysts complete this task for a particular week, the next week very soon arrives and his task keeps repeating week over week without an end. This is unproductive since Sales Analysts should be spending time trying to get important insights from Sales numbers which can help them beat revenue targets instead of trying to become a data gathering guy of the Sales Team.
  • Now get an estimated figure of the Salary you pay to your Sales Reporting Analyst annually.
  • Note: Do this step only if your team's sales analyst is involved with the above non-revenue generating activities. If your Sales Analyst is involved with other productive work, you may skip this step, or try to find the hours spent by him doing these non-productive tasks and get estimated Salary getting spend on that part.

Get the Total Estimate:

Total Yearly CRM Budget (Annual Salary of Sales Executive * (Total Time Spent per day doing Unproductive work/ 8 hours per day) *  Total Number of Sales Executives in team) (Annual Salary of Reporting Analysts * Total Number of Reporting Analysts in your team)


The above amount would be the yearly estimate of how much should you be spending on your CRM which is going waste in the Salary of resources doing non-revenue generating tasks.

How much should you be spending monthly per sales staff?

CRM Budget per User per Month = Total Yearly CRM Budget / (12 Months * Total Number of Sales Executives) 

This figure would give you a rough estimate of how much should you be ideally spending per team member on a CRM.

Let me know your thoughts on this.
3 Sales Tips to get response from C-suite executives
Getting a meeting from a C-suite executive of a mid or large corporation is one of the most daunting task for a sales person. This is because unlike other prospects who are in the lower hierarchy of an organization where sales person can pitch in multiple times and try out different ways to approach the prospect, with a C-suite executive, the sales person stands just one shot.


That's the reason why sales professionals should have a fool proof strategy while approaching a C-suite executive while trying to get him for a sales meeting.

Here are 3 tips from my experience which can help you get a reply from CXOs while trying to get their response for a sales meeting:



1. Try asking for a referral within the organization.

Most of the time, top level executives especially CEO, CMO, CFO or COO would be involved with multiple internal tasks that they would hardly get any time for an external sales person which is you. Even if they find your short sales pitch to be interesting, they would hardly have bandwidth for a meeting. This is the reason they would try to defer it. But most of the time, CXOs would be ready to delegate it to their Subordinates or Executive Assistants. 

A few of the executives would refer you to another person in their organization on their own, but not the case with everyone until you ask them for that. So, next time you send a cold email, try asking them for a referral in their organization whom you can talk for discovery interviews or sales meetings.



2. KISS - Keep It Short & Simple

Almost every CXO of an organization is a busy person hardly having any time even for self. During these moments, if you get a chance to talk to him on phone, don't waste his time asking long discovery questions which you can ask others within the same organization. Try to keep your talk short, crisp and to the point instead of trying to blabber round and round about a concept just to gain his attention. Instead of getting his attention, chances are there that you would lose his interest which is lethal in sales.

Hence, the next time you get to talk to a C level executive, try presenting key benefits for him which you can offer via your products, instead of asking him his 5 year vision of his organization and asking generic time consuming questions as to what are their challenges. Ideally you should ask these questions, only if you have a longer meeting planned with the executive especially for discovery interview.



3. Follow Up

Following up is the key to sales success. But it takes a key precedence if you are trying to sell to busy C-suite executives. Often CXOs would be travelling a lot, meeting people around the world. This means he would stay away from his base office often. Chances are there that in his run up to catch up his own work, he would forget about your last meeting. This necessitates that you follow up with the executive by cut-off date before any competitor pitch in and grab the deal.

So, the next time you finish off a meeting with an executive, make sure you ask him when he shall be available for a next meeting and make sure to add that date to your CRM so that it can remind you for another meet up.


I hope you enjoyed reading the post. Do let me know your thoughts on this.

3 Price Negotiation Mistakes every Salesperson should avoid
Often, Salespersons tend to make mistakes during their Sales Negotiation conversations and tend to lose out on the sales wondering what exactly happened. The lead which they have been following up for many month now is lost just at the last phase of the sales cycle at the time of Sales Negotiation. These are the 3 expensive mistakes which every sales person should avoid at the time of negotiation.


1. Price Negotiation on High Cost Products


Avoid negotiation with Customers for reducing the price of high cost products. Always try to negotiate with customers only for the low cost products having a high perceived value in the minds of the customers. If you reduce the price of High Cost Products, then customers would expect that every time they buy from you. This is detrimental for your business growth since you would find it difficult to run your business on thin margin for a prolonged period of time.


2. Not knowing the Urgency for Customers


As a Salesperson, you would stand good at negotiating position if you are aware of the extent of urgency of the customer who wants to buy from you. If they are having less time and the purchase of the product you are selling is urgent for them, then you stand a better chance. In this kind of situation, you have more chances to crack the sales deal with lesser amount of negotiation with the customer. This is because since customer doesn’t have much time to search for another vendor, they would happily agree with your price. 


3. Starting Negotiation without understanding the needs of the customer



You should never start sales negotiation at the start of the sales cycle even without understanding the needs of the customer in the discovery phases of the sales cycle. The more questions you ask to your customer during the Need Discovery phases of the sales cycle, the more information you will get on the needs and requirements of the customers. This will help you set the expectations of the customers and would help you negotiate better. The more you know about the expectations of the client, the more you would be able to point out those facts during your sales negotiation conversations and hence customers would be willing to pay a higher price if their expectations are met.

What is Sales Prospecting
Any Sales Lifecycle comprises of various stages which starts with Prospecting. But very often newbie salespersons or enthusiasts asks "What exactly is Sales Prospecting?".

In this post, I would like to address those newbie and ambitious sales persons to understand what exactly is Sales Prospecting.


If you are in Sales, you would most certainly have following ways to get business:

  1. Leads from Networks.
  2. Leads from Inbound Marketing.
  3. Leads from Outbound Prospecting.


Aaron Ross, the author of Predictable Revenue mentions Outbound Prospecting to be one of the powerful weapon in your sales arsenal to achieve 10x revenue growth.

The reason for this is simple. First, Leads that you can get from your Network is limited and hence for 10x revenue growth you cannot always rely on networks for your whole business. Second, Getting Leads from Inbound Marketing takes time. You need to get your SEO right, you need to carve out a lot of contents to be absorbed by visitors before you get your first lead subscribing to your mailing list. Both of the above techniques are little unpredictable though they do have significance in the long future. This is the reason companies should never ignore Outbound Prospecting.

Ideally Outbound Prospecting is done by Sales Development Representatives wherein they try to find out new leads for the business. Prospecting is an act of finding or hunting for new leads. This is done by trying to contact the leads via cold calls, cold emails, etc. Sometimes this may also include calling or trying to contact the leads who went cold after some time in the past (technically, this comes under Lead Nurturing).

Contrary to the age old belief that Prospecting is a kind of tele-calling job, it has actually changed a lot in the recent years of modern Sales and Marketing. The quality of work done during Prospecting stage can truly break or make a company. This is an important determinant for the Business Development Representatives to be able to convert the deals given to them by Sales Development Representatives. If Prospecting is not done on the right customer persona and lead qualification is not done correct by the Prospecting team, it can ultimately waste months of lead nurturing time given by the Business Development Rep.

Hence Prospecting should be done very carefully.

While doing Prospecting, a Sales Development representative should clearly prepare the persona of a prospective client by preparing a checklist by acquiring data of the customer profiles acquired in the past. This can include the typical industry where the clients come from, the typical revenue which clients have, the typical budget they have for the product which you are selling, job role of the person who took the decision to buy your product, job roles of the key influencers in those deals, etc.

Once the customer profile persona is ready, the prospector should start Prospecting by trying to contact the leads in appropriately applicable ways and try to analyse if they fit in the persona. If the lead fits in, it should be advanced to the next stage of the sales process to the Business Development representative so that he can take it to closure.

Prospecting is like Going to Gym for Exercise. It should be done regularly and with adequate frequency. If you do not exercise regularly, sometimes you will feel tired, some times energized but you will never get to your ultimate objective of attaining fitness. Similarly, if you do not do Prospecting regularly, your Sales Pipeline would have inconsistent and unpredictable flow of revenue. A few months you would have a surge of leads for your Business Development reps to work on, which would become unmanageable and they would end of losing many of them. While a few months would have very less leads for your Business Development team to work on rendering them underutilized or less productive. This will also hit back in the form of inconsistent revenue flow.

Hence to keep your revenues in control, Prospecting should be done by dedicated sales development representatives and should be done regularly.

Hope you found this post useful. Do comment below and let me know your thoughts.

Stop committing these 15 Costly Sales Mistakes
I tend to read a lot of books on Sales Methodologies. Now that I have read a numerous materials on Sales, I felt let me share a list of Costly Sales Mistakes or Situations which every sales professional should try to avoid in a Sales Process.

As per my experiences, the following 15 types of sales mistakes should be avoided at any cost:
Should Startups Price their Products too Low?
Recently, I was going through the websites of many newbie startups started by first time entrepreneurs and found that almost all of them have priced their products or services very low. In this post, I will tell you why this is one of the very bad pricing strategy and is a recipe for ultimate disaster.
Why newbies should focus on Vertical Selling instead of Horizontal Selling
Are you a Newbie just delving into your Sales Career?
or
Are you a Sales Manager looking for assigning a territory to a newbie in your team?

or
Are you a Newbie startup looking to start with Selling your Product or Solution?


If answer to any of these questions is "Yes", 
Then you should focus on Vertical Selling instead of Horizontal Selling!


Surprised? In this post, I would tell you why is that so!