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Soft Skills Equal Hard Results

These are tough times for small and medium sized businesses…

People have less cash to spend (more money is going to cover basics like food, fuel, and mortgage payments).

Credit for small businesses is either not available or unaffordable with exploding interest rates.

What to do?

Batten down the hatches and trim expenses? Hang on until the wave passes and then come up for air?

How about going the other way? What about investing in soft skills for your team?

Awesome Service Training

Many businesspeople I talk to about investing in soft skill training for their Teams resist it in one of 3 ways:

  1. They say, “we already do awesome service. We do not need it”.
  2. They mistakenly do not make the connection between soft skills training and hard-core business results.
  3. They do not see it as relevant to their business, or their industry.

First, before we get into these three objections, what exactly are soft skills?

Soft skills are training that embed Performance Standards for your Team in the service aspect of your business.

And, every business has a service aspect, even if you sell manufactured goods.

They are things like:

  1. How many rings before you answer the phone?
  2. What is the first thing every customer hears/reads when you answer the phone, enter the shop, read an email? Is it consistent, kind, filled with softeners?
Softeners

Soft skills are well named. They are often words, or scripts that soften what is otherwise harsh, cold basic business language.

Even greetings like “good morning, good afternoon, or even hello” can be considered softeners.  “By the way”, “I was wondering if…”, “do you mind if a put you on hold?”, “thank you for your patience” are a few other softening phrases.

Even punctuation marks like “…”, or a comma instead of a period can serve as sentence softeners.

Can you feel the difference between these two as an example –

Thank you,

Thank you.

Softeners in speech, emails, and phone calls can act like the honey that sweetens the harsh, cold words of language.

Is it less efficient? Yes.

It takes more time in speaking, writing, and on the phone.

Recently a business associate sent an email to one of my Team members.

It had no hello, no good morning, no greeting, no name, nothing.

It consisted solely of 5 words:

“What the heck is ____?”

This was the first email ever received from this person.

It was more efficient, yes. However, it occurs as a little abrasive and rude.

And this is another mistake people make. It is a big one. They think it is okay to speak rudely to their internal Team and then pour on the sugar for outside customers.

No, no, no.

How you do one thing is how you do everything. Customers will one day overhear rude language to internal Team members. This makes them immediately suspicious of the motives of the company’s external politeness.

Soft Skills Equals Hard Core Results

We all know that soft skills equal hard-core results. We know this is true. How?

Because we as consumers are always shopping with our wallet. Especially when it comes to eating out.

Take two restaurants with the same quality food. One place has awesome, genuinely caring, consistent service from the time you enter to the moment you leave.

The other one may have slightly better food. I would assert that the first place will have more repeat business, a higher average sale, more referrals, and more profit than the second one.

More than any other factor people come back to a business when they feel that you genuinely care for them. To demonstrate that you authentically care for your customers, you must have Performance Standards that consistently show that you do care for them. It cannot be a “once in a while” experience.

Performance Standards in action also must be done for their own end, not to get more sales, or a higher average sale.

Your customers will smell the insincerity.

Awesome service Performance Standards must be done because:

  1. It is the right thing to do.
  2. They make you feel great.
  3. They make your customers feel great (even if they do not come back).

 

Okay, let us go through the objections people have for implementing soft skills training….

Number One Objection – “We Already Provide Awesome Service. We Do Not Need It”

Does your company have documented Performance Standards for all areas of your business where customers engage with you?

If no, then I would assert that it would be impossible to create consistent wow factors for your business.

Consistency also means that the standards are the same regardless of which Team Member is serving a customer.

They are the same every day in every interaction.

When not, you can create additional Performance Standards for dealing with the break-down in a way that leaves the customer impressed with how you handled it.

Your Performance Standards cover:

  1. How you respond to emails (timeliness, tone, content, follow-up).
  2. How you greet customers when they come into your store or shop.
  3. How clean your store, shop and bathrooms are.
  4. How you answer the phone, the scripts on the phone, and how you end the call.
  5. In short, every single what we call “moment of truth” is designed in such a way as to leave your customers feeling cared for, served, even wowed.
Number Two Objection – No Connection Between Soft Skills Training and Hard-Core Business Results

The way to prove that soft skills lead to hard core results is simply to measure the impact over the first quarter after implementing an awesome service skills training. (This should be the first quarter after the results are embedded in your Team).

I would assert that you should see more repeat business, more referrals, and a higher average sale per transaction.

And it is important to measure those three things; however, that is a topic for another blog.

I know of a regional Australian airline that implemented an awesome service phone training a few years ago. In the first year after that training, they saw an increase of $21 million in sales. Pretty hard-core results, wouldn’t you agree?

Number Three Objection – My Business is Special, Unique

Many businesspeople I talk with are victims of magical thinking.

They believe that there is some brilliant, unique formula that will produce great results in their business.

Awesome service Performance Standards just seem too basic, too elementary for their “complex” and unique business.

Yet, I repeat, again – what has you return to a particular restaurant, hotel, shop, online business? Is it solely price? Is it solely the product?

No, it is the before you become a customer experience, it is when you are buying the service or product experience, and it is after the transaction is complete experience – i.e., the follow-up.

Every single business and organization on the planet wrap their product or service in some kind of service delivery mechanism.

Without Performance Standards It will be ad hoc, unplanned, unscripted…which means your customer’s experience will be different every time. It will change depending on the day, the person, the branch. Or even non-existent.

By delivering your product or service inside well trained and consistently applied Awesome Service Performance Standards you will almost be guaranteed of increased sales, repeat business, and higher cash-flow and profits. That is on the condition that your products are very good quality or above standard.

Thank you for reading…

Do You Make These Top 3 Mistakes in Selling Your Services?

What is the greatest thing in your business? The tools you use?

Nobody Cares What Tools You Use

Imagine you are a home builder. And, you have the absolute best tools in that industry. You have the Triple A, skookum, best-in-class power widget tools out there.

Maybe you have custom tools that no one in your industry even heard of.

Does your customer care?

No.

Sorry. No.

I can prove it. A guru home builder has the ability to make you a stunning home with a hammer, and handsaw. You see where this is going, don’t you?

It is so easy to make this mistake, though.

I do it all the time. When we started our amazing, skookum, best-in-class outsourced, online, fixed-fee accounting service 20 years ago, NO ONE was doing it.

We developed custom scanning/upload software to do it.

We were immensely proud of that, and our custom servers, and dual monitors (at a time when most considered that wasted screen real estate). So…we…talked…about…our Cool Tools.

We signed up clients, but not because of our cool tools.

Nobody Cares How Great Your Team Is

Ok, so you zip your lip on the cool tool topic. Great!

Do you think your customers/prospects want to know how amazing and skilled and peachy your Team is?

I could talk about our amazing Team for hours. Why? Well, they are simply amazing. And I am proud of them.

Prospects do not care. Why not?

They do not know them like you do. You might as well talk about how cute your children are!

They do not care. Sorry.

Nobody Cares About your Systems, Features, Price, How Long You Have Been in Business…

You can tell that headline could be 9 miles long, right?

This blog could have been one sentence long. Nobody cares – gives 2 cents – about you, or your business.

That is really the truth, isn’t it?

Selling is exactly like dating.

The person you are interested in dating is not interested in anything about you. Yet. That will come.

They want to know what difference dating you will make in their life. What experiences you will bring. The fun. The joy. The laughter. The romance. The future. The children. Ok, you get the idea…

Prospects Have One Thing. And They Are Looking to You for One Thing Only

Prospects have a problem. In many cases they do not know they have a problem.

Your job is to uncover it. Your job is to be the solution.

Talking about the tools you use, the Terrific Team you have, or any other feature is of zero interest to them.

They need to hear you say exactly what their problem is. They want you to say it in a way they can hear it. (They may be embarrassed about their “problem”).

You have to find their pain.

Empathetically.

Because emotions are involved. They want to feel great about their decisions.

Great selling can be summed up as:

  1. Find their problem
  2. Find their pain
  3. Be the solution that makes them feel excited

Do you never talk about your great Tools, Team, and Techniques?

If they ask. But keep it short and focused on the results/solution you will bring to resolve their pain and have them feel excited again.

Thanks for reading…

3 Things You Must Measure to Forecast Sales

How do you forecast future sales?

The word “forecast” means – “to predict or estimate (a future event or trend)”.

Cash is tight. You must get your sales forecast to determine your cash-flow.

People make one fundamental error in forecasting sales.

They treat sales like it is one thing.

Sales are not one thing. Sales are three things.

And, those 3 things must be separately measured. It is the only way you can gain control of your forecast.

Sales are a lot like profit. We measure net profit and we measure sales. But they are more like a scorecard result than an item you can impact directly.

Let me give you a simple example. Take the game of hockey. You want the score to go up. (Think of the score like sales).

How do you do that? You are the coach. How do you score more goals?

More shots on goal might lead to a higher score. So, focus on “shots on the net” in order to get a higher score.

What are the 3 things that make up sales? You will groan because it is so obvious. Yet it is missed all the time.

The first is….

Number of Customers

The first question to ask is – “how many active customers do we have right now?”

They must be actively buying from you. Not just on a customer list.

Sales are from customers buying stuff. To increase sales, you must look at increasing the number of customers.

The first number to “find” is your number of customers.

Let us say you have 300 customers. Great, that is what we start with.

The second number we must find is…

How Often Do They Buy?

How many times (on average) does each customer buy from you?

This is called “Transaction Frequency”.

You get this number by dividing the total transactions in a given period (1 year, for example) by the number of active customers.

In our example, let us say you had 15,000 sales transactions last year.

You divide 15,000 by 300 customers and you get 50.

Fifty is the average number of times each customer is shopping. (300 x50 = 15,000).

Said another way, they are shopping a little less than once a week throughout the year.

You now have two critically important numbers.

Number of customers, and, the frequency that they shop, on average.

The third number in our secret formula is…

The Average Sale Per Transaction

How much does each customer spend when they purchase from you?

To get this number you first find your total sales for the period. Next find your total transactions.

Imagine your sales for the past 12 months are $3,150,000. We know the total transactions are 15,000 (see above).

The average sale per transaction is $3,150,000 divided by 15,000 = $210

Putting it all together we have 300 customers shopping on average just over once a week (50 times a year) and spending $210 per purchase.

30 customers x 50 times of shopping x $210 spent each time = $3,150,000.

Why is this so important?

You cannot make the score go up in hockey by staring at the scoreboard. More shots on goal are needed.

You cannot make sales go up without focussing in on these 3 separate items. You will need a separate strategy for each one.

Before we look at strategy, let us look at how the numbers interact.

Take a look at this table:

Components of Sales: Present Change Possible
Position Factor Position
Number of Customers 300 5% 315
* Average Purchase Frequency per annum 50 5% 52.5
Number of Sales Transactions                    15,000 16,537.5
* Average Sales Value  $ 210 5% $220.50
Total Sales Revenue            $3,150,000         $3,646,518
Increased Sales $496,519

 

Note the amazing power of a small 5% increase in each of those 3 areas. Compare that to concentrating on only one area!

In Summary

Sales can increase by $500,000 in this example. How? With a 5% increase in 3 areas:

  1. 5% increase in number of customers
  2. 5% increase in how often they shop on average
  3. 5% increase in how much they spend when they shop

Each area has a different strategic focus. To get new customers is expensive. To get them to come back more often requires a different mindset. It is also way less expensive.

So, the lesson is this – when forecasting sales do not just add a percentage to last year’s sales and hope for the best.

First break down your sales into this 3-part formula.

Finally, work on increasing each of the 3 parts with a different strategy. That is more for another Blog.

Thanks for reading…