Sales Words: The Performance Effect

Jealous of the Top Performers on Your Sales Team? Here’s a Reason to Reconsider.

In addition to recognition and accolades, top performing sales people enjoy a hidden side benefit that helps them retain there status for ever longer. What I call the Performance Effect is the added motivation gained from simply being a top sales person. Whereas before, you might have identified yourself as a mediocre performer, now you have the extrinsic reinforcement that say you’re a top gun. To you, it makes sense to spend that extra hour or two making an extra call or answering an extra RFP.

All the while, everyone else on the sales force wonders how you do it. For reps with steadily growing territories and stable performance metrics, the performance effect may sustain itself for months, if not years. For sales reps who experience significant and frequent changes, the effect may be fleeting.

As shocking as it may sound, the performance effect is something to avoid rather than envy. The reason? All good things come to an end – even for star sales people. One small change in performance measurement, product pricing, or territory geography is all that may be required. The longer a rep believes his own positive press, the more profound the fall from hero to zero can be. Salespeople experiencing this abrupt change may become bitter and experience a level of self-doubt. A rep feeling this way may feel she somehow “lost her mojo”.

Unlike other jobs, sales people experience a wiping clean of their performance slate every year. We start every year with $0 in sales and essentially need to prove the right to keep our job once again. Therefore, more so than in others professions, sales people need to be reinvigorated. Daniel Pink, author of “Drive: The Surprising Truth About What Motivates Us”, believes we all need to see the power of intrinsic motivation. Having a strong sense of meaning or purpose in your job makes you resistant to the extrinsic ups and downs of things like quota attainment. According to Mr. Pink, other essential factors to motivation include autonomy and mastery.

Sincerely,

Meaning2work

Sales Words: Offer Erosion

Lose a Customer Suddenly Without Any Explanation? The Answer Could Be Offer Erosion.

Not to be confused with Brand Erosion, a term referring to the deterioration of brand identity, Offer Erosion occurs on a much more tangible level. As we know, good products and services often rise to the top of the market. Buyers instinctively seek them out in order to maximize value. At the same time, companies succumb to the never-ending drive to produce returns for investors.

Cutting costs is quicker and easier than producing new product offerings. Sometimes, this comes in the form of delivering less to the customer for the same amount of money. Small reductions in value (ie a slight price hike here, a reduction in features there), may go unnoticed by the customer until a clever competitor presents them a product that looks head and shoulders better than their current vendor’s.

Have you ever seen your product or service erode over time? Can this be avoided? Please comment with your thoughts.

Sincerely,

Meaning2work