Editor’s note: Paul Kirch is CEO of Actus Sales Intelligence, a Fort Worth, Texas, business and sales consulting agency. He can be reached at 214-295-6111 or at pkirch@actussales.com.
If you ask 10 people what the status of business in the research industry is, you’re likely to get 10 different answers.
We’re in the month of June, which is typically quite busy as we head into the summer lull. Not surprisingly, I am hearing that business is booming with some marketing research agencies while others are very concerned at the decline in sales activity or proposals. This isn’t the first time I’ve seen and heard discrepancies but there does some to be consensus among those I’ve spoken to: They all think that our industry is going through major changes in how research is looked at within organizations and how future buying decisions will be made.
A lot of speculation
There’s a lot of speculation that non-traditional methods are going to impact the more traditional modes. Some are putting their money on mobile research technologies while others are talking about how big data is the next big thing. And of course the debate about social media research rages on. There is no doubt that research dollars will be spent on areas that today are deemed non-traditional. This will also undoubtedly lead to service providers and research firms vying for some of this market share.
I could look into a crystal ball and try and predict what’s going to happen but I’d rather not add to the speculation. Instead, let’s look at what we know. Sales departments and their staff are more important than ever. From the conversations I’ve had, the firms with strong sales teams (i.e., those that are continually developed) are busy. Granted, there are various levels of “developed.”
A few factors
The effectiveness of a sales team and the individuals on the team depends on a lot of variables but it essentially comes down to a few factors.
Hiring
Hiring effective salespeople can be harder than it seems. If you’re hiring someone from within the industry, do they have relevant experience? Do they have a good track record? Does their self-reported sales performance translate to reality? What’s their reputation in the industry? I’m often shocked when I learn that individuals are hired from the information on their résumé alone. Making a bad hire is expensive so do your homework and investigate. Just because someone was successful in their previous positions doesn’t mean they’ll be successful in the role you’re offering.
Motivation
How you incentivize your sales staff makes a difference but not all salespeople are motivated by money, despite what some believe. The reality is, most people go into sales because of the opportunity to earn more, so a commission plan or a bonus plan is critical. It may or may not be what ultimately drives them but it is still a necessity. In addition, to truly motivate, you need to understand the individual. What makes them tick? If they are competitive, consider a sales contest. Do they want to feel they are important to the organization? Let them voice their opinion in sales meetings.
Development
Too little emphasis is placed on team and individual development. Can you develop skills internally or do you need to bring someone in from the outside? Often, if training is provided, it doesn’t yield greater results, which leads to frustration. I often hear “I sent them to a training and nothing changed.” In part, this may be because large-group coaching or Web-based training focuses on group challenges instead of on issues that impact an individual. For example, motivation is an individual issue. The same is true with training. What one person responds to or embraces may be different than the next. Get to know your team at a personal level.
Management
How a team is managed can be the difference between success and subpar results. Many organizations appoint someone from operations or some other group to serve as the sales manager. While I recognize this is an operations-focused industry, you can’t effectively hire, develop and motivate your sales staff if you don’t have a strong sales background. This doesn’t mean there aren’t examples of companies who are growing with this form of management but it’s a dangerous practice. You can’t truly develop a team if you don’t understand their challenges and struggles.
Does this mean you have to go out and hire an expensive sales manager? No. After all, even if I said yes, many companies would refuse to do it because of cost. What can be done? If you can’t afford to hire a manager with sales experience, you can hire a salesperson as a team leader, reporting to the manager. Alternatively, you can get the manager the appropriate training, such as Dale Carnegie Leadership training. Also consider tasking the manager with some sales responsibility. They need to be able to relate to their team’s challenges and their team will respect that they have a manager who knows what they are doing. If not, you’re breeding an environment with very little motivation. I’ve seen highly successful sales professionals start to decline under the wrong management.
Other issues
In addition to these four factors, there are some other issues that can impact the degree of success.
Job stability
First off, we know that there is less job stability today than in the past. Even if an individual’s job is secure, the likelihood that they are “open to new opportunities” is very high. Despite all the talk that it’s hard to find jobs, highly experienced people can often move on quite easily. The point here is that your contact in an organization today might not be there tomorrow. We’ve all faced this, where we have a strong relationship within a firm and that person moves on, leaving the relationship vulnerable. What are you doing to broaden your relationships within a firm? Don’t rely on one key contact. Instead focus on developing a relationship with others. If you have a champion within an organization, give them a reason to talk you up. This is where face-to-face meetings are crucial, as you can leverage your relationship to go deeper in the organization.
Lack of loyalty
Another factor that impacts your leverage within a client organization is a lack of loyalty. Even the best relationship in an organization doesn’t translate to a loyal one. This is simply the nature of business. There may be price pressures or other influences where your contact is forced to look at other suppliers. There is more and more competition knocking on their door so they are likely to hear valid arguments as to why they should try someone new. When buying decisions were made by senior executives, CEOs or owners, the likelihood of loyalty was higher, simply because the buck stopped with that person. Today, however, mid-level project managers are often responsible for choosing suppliers. Keep giving them reasons to see you’re their best solution. Make them look good and help them see that your firm is reliable and trustworthy. If you have a problem with project fulfillment, check all egos at the door and address it proactively and fairly. Once again, being known and respected by multiple people in the organization can also help.
Differentiation
If you feel you can’t differentiate your offering, can you differentiate your approach? How about your processes? If you are offering the same service as your competitor, how do you justify a higher price? A successful track record helps but once again, loyalty may be fleeting if there is a manager telling your contact to save money on a project. If you live and die by proposals, you’re going to face price pressure. It’s just a fact. How you justify your pricing can make or break your chances of winning in competitive situations. Focus on arming your salespeople with rebuttals to any objections and be prepared to address pricing issues when they come up. Do you believe that you have good people and do good work so you can justify a higher cost? What do you think your competitor believes? Don’t you believe they feel the same way about their own team? Arm your team with the right messaging and approach to prevent being another me-too marketer.
Let’s be clear
No matter if you’re seeing a great deal of success or if you’re experiencing a decline, I encourage you to focus on your sales process and how you drive greater success. The future of our industry may not be 100 percent clear but let’s be clear about one thing: Change has been impacting research since its infancy. Change can be a very positive thing if you’re prepared to address what it means to your organization.
I wish I could tell you what research will look like in five years. What I can tell you is that sales and marketing are going to play bigger roles than ever before. How you integrate and grow these two areas will greatly influence where you stand in tomorrow’s research space.