Latest / Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint / Is Your Sales Team Underperforming? It Might Be These 4 Things
Transcript
- 0:01Hello and welcome to the show. If this is your first time
- 0:04listening to the podcast, I just confirmed this morning that we
- 0:07have over 900 episodes. So that means before the end of
- 0:10the year, we would have crossed the 1000 mark.
- 0:13So if you're brand new, there's a lot of stuff over here that
- 0:15you can binge listen to and there's going to be more coming
- 0:19down the Pike in the future. So rest assured that you have
- 0:23discovered the right place to learn about all things sales
- 0:26related, especially the discipline of personal selling,
- 0:30which is where you are having a conversation with someone either
- 0:33face to face in the DMS, what else, WhatsApp e-mail.
- 0:39I mean, so long as you are having a conversation
- 0:41one-on-one, then this is the perfect place to be.
- 0:44So today, what we're going to be discussing on the podcast is not
- 0:48a listener question. So this is not a question I've
- 0:50been given before, but I think that this is a topic that we
- 0:53should be looking at here. And for those of you who own
- 0:59your own businesses, I mean, you're in SME space.
- 1:03It's not just you. You're not just the one man show
- 1:05or one woman show. You have a bunch of people
- 1:07selling on your behalf, or maybe it's you and your husband and
- 1:12your kids selling on your behalf.
- 1:13I mean, whatever it is, this is one question that people in that
- 1:19kind of space have on their mind all the time.
- 1:21And that is how do we boost the sales team performance?
- 1:26This is not a question that I have, or rather, no, that's the
- 1:30wrong way about it. Yeah, this is a question that
- 1:32I've answered on the podcast in the past.
- 1:35So I'm going to take a different angle for today's episode.
- 1:39So in the past, I've answered it in a very brief, succinct
- 1:43series, but now I'm going to stretch it on and take a
- 1:46different angle with that. So my typical answers that I've
- 1:49given on the podcast, and even when people ask me this question
- 1:52on stage, for instance, I typically answer it in about
- 1:55four or five points. First off, I say you should hire
- 1:59the right people to begin with. After that, I say make sure that
- 2:04those people have been trained on your selling framework of
- 2:09choice. Then I usually say make sure you
- 2:13provide these people with sales enablement.
- 2:16I'll explain what sales enablement is later on.
- 2:18And then the last one is the question of incentives.
- 2:23Make sure that the incentives are worth it and these are
- 2:26incentives that they can count on.
- 2:27So let me give a summary now to all these things that I've
- 2:30spoken about. Now, when I say about higher
- 2:33right, I remember that we're talking about things from a
- 2:36sales and business development perspective.
- 2:38It's not about the academic background or it's not about
- 2:41their accomplishments and things like that, but rather it's about
- 2:44a winningness and a flexibility towards learning because sales,
- 2:50getting good at sales, requires attitudinal change in how we
- 2:55face the world. And if you have somebody who is
- 2:59set in their ways, who believes that they know the best and this
- 3:03is how the world works, trying to get that person to fit into
- 3:06your business and your system is not going to work.
- 3:08So you're better off just hiring the person who is already
- 3:12flexible enough and who has that growth mindset from the
- 3:15beginning. Because all this thing about
- 3:17growth mindset, attitudinal change, liking personal
- 3:21development, blah, blah, blah, all this stuff is really,
- 3:24really, really hard to train. So to make your life easy, don't
- 3:30hire somebody who has the MBA and who has the whatever it is
- 3:36that you're looking for. But the person know, they hear
- 3:39what as in the person is as dumb.
- 3:41OK, no, not dumb. The person is as obstinate as an
- 3:44ox. Don't hire that person.
- 3:47You guys will be constantly quarrelling.
- 3:49Eventually you're going to sack the person or the person is
- 3:51going to leave you. It's not going to end well.
- 3:53You're better off taking somebody who has the right
- 3:55attitude to begin with and then train the person up in product
- 3:58knowledge and all the other stuff then.
- 4:03OK, so the second thing I talk about is to make sure that you
- 4:05have trained these people on your own preferred selling
- 4:09framework because the principles behind how to sell are the same,
- 4:18while the application of those principles are different
- 4:21depending on the context, depending on your customers,
- 4:23depending on the industry, depending on things like that.
- 4:26So if you are a wedding photographer, let me start from
- 4:30there because that was my that's my primary constituency.
- 4:32That's why I started off my business journey over 15 years
- 4:36ago. So if you're a wedding
- 4:37photographer for the way that you run your business, there's a
- 4:41certain way that you want your business to be handled and you
- 4:44want your customers spoken to. So you need to make sure that
- 4:48you figured out all these things and then train those people on
- 4:51that. Because if someone is good at
- 4:54sales, but the person has a different philosophy and the
- 4:57person sees customer service, customer fulfilment sales in a
- 5:01different way than you do, it's going to create all kinds of
- 5:05problems. The person is going to sell
- 5:07things that you can't fulfil. The person is going to put off
- 5:11all kinds of brand associations that don't match, that don't
- 5:16match yours and you know, different things like that.
- 5:21So it's best to make sure that you have figured out a bunch of
- 5:23stuff first, especially if you're on SME, small and medium
- 5:28scale enterprise, small business owner, self-employed, you're
- 5:31trying to get people to sell on your behalf.
- 5:33If you've been doing this for any number of years, you need to
- 5:35figure out a bunch of things. And then when this person comes
- 5:38in, train the person. So the things you need to train
- 5:41the person is who is your ideal customer.
- 5:44Not everybody knows who your ideal customer is.
- 5:46You might get a sales girl and put her in the shop and what you
- 5:49sell is children's clothes. And because of that, she thinks
- 5:53everybody who has a child is your customer.
- 5:56But you who owns the shop, you know that you only buy stuff
- 5:59from Mamas and Papas in the UK and maybe some of all these and
- 6:04maybe like Gap, the baby Gap and things like that.
- 6:07So these are brands that are not what's the word, These are not
- 6:13run-of-the-mill brands. So it's not just any parent who
- 6:18is your customer, but it's parents who have a certain
- 6:24income level, who have a certain kind of sophistication and who
- 6:28desire certain kinds of things. So when you get this sales girl,
- 6:31I put her in your store, you need to let her know that our
- 6:34ideal customer are people who look like this, who sound like
- 6:38this or who do this or who do that so that she doesn't waste
- 6:41her time running up to people like me and saying, Sir, will
- 6:45you come and check out the clothes in our shop?
- 6:47And then I go there and then I see Baby Gap and I'm like what
- 6:51the hell, ME75K for a pair of trousers for my 10 year old son.
- 6:57No thank you. And then I walk right out.
- 7:00So you need to let your people know who your ideal customer is.
- 7:02So if the sales girl that you put in the shop knows who your
- 7:05ideal customer is, if she sees someone like me walking around,
- 7:08she'll say this one and she will let me go.
- 7:11Because I don't look like the kind of person who will spend
- 7:1475,000 naira for a pair of trousers for a 10 year old kid.
- 7:18I don't even spend 75 K for a pair of trousers for a 15 year
- 7:21old kid. I won't even spend 75 K for a
- 7:25pair of trousers on myself. Maybe times might change, but
- 7:28right now? 75 K for a pair of trousers?
- 7:31You must be kidding me. Now, that doesn't mean I'm a bad
- 7:34person. It just means that whoever it is
- 7:37that runs the shop or runs the Instagram handle or the whatever
- 7:41has not trained up the person on who the ideal customer is.
- 7:44So you can see how it tiles into ties into sales performance.
- 7:48If your sales boy, your sales girl, your husband, your younger
- 7:52brother, your children, if they don't know who the ideal
- 7:55customer is, their sales effectiveness is going to be
- 7:57poor because they're going to spend time running after the
- 7:59wrong people. Then you also need to train them
- 8:01on where can these people be found?
- 8:03How do you start the conversation with them?
- 8:06How do you get them through the buying process?
- 8:08How do you handle money objections and negotiations?
- 8:11So let's say somebody who is maybe two or three steps above
- 8:14me enters into the store. So yeah, the person can afford
- 8:17to buy 75K for a pair of trousers.
- 8:20Of course, Nigerians like to haggle, so the person sees IT75K
- 8:24but the person knows OK, this is authentic baby gap or this is
- 8:27authentic Mama and Papa. And so the person thinks at 75
- 8:30K, let me see if I can get it for 60 K.
- 8:33And then the person says 75K for what?
- 8:37Your sales boy, your husband, your sales girl, your children,
- 8:41they need to be able to figure out how do you handle these
- 8:44money objections, How do you start negotiating things like
- 8:46that. That's how you make people much
- 8:48more effective. Then you also need to free up
- 8:50your people on how to do customer service and excuse me
- 8:54and after service functions. You also need to train them on
- 8:57how to get repeat business because the real money is not
- 9:01going to be when. So excuse me, Yeah, my SO
- 9:05thought is getting better. So the real money is not going
- 9:07to be made when I walk into the shop and then I buy 1 trousers
- 9:11for 75K and let's say on that 75 K, let's say your profit is
- 9:16maybe 35 grand. So the real profit is not when
- 9:19you get that 35K from me. The real profit is if I buy baby
- 9:24trousers today for 75 K and then I come back next month.
- 9:28And then I buy 2 shirts, one for a boy, one for a girl and maybe
- 9:34one for my niece. And I buy each of them, you
- 9:36know, 7575 K And then, you know, between last month and this
- 9:40month, you've now made, what was that, 353570?
- 9:45So you've now made 140K on top of my own head, one customer.
- 9:49So that's the trick to get the people to come back again and
- 9:52again. And also to get me to now tell
- 9:54my friends who are paid up so that they can go to the store
- 9:58and also buy baby Straussers for 75K.
- 10:02But unfortunately, I'm not in that segment yet.
- 10:04So if you do sell stuff like that, don't bother reaching out
- 10:07to me. I'm not your customer.
- 10:09And I'm not going to spend 75 K to buy trousers even for myself.
- 10:12I'll just talk about the kids. All right.
- 10:16So these are the sorts of things that you have to train other
- 10:18people on. Now, it should be obvious, but
- 10:22for some people it's not obvious.
- 10:24It means you must have figured out all these answers yourself
- 10:28and create an SOP, standard operating procedure, whether it
- 10:32is detailed or whether it's in bullet points.
- 10:34That is what you will use to now train your sales team.
- 10:38Also, if it's in writing, it's something that they can refer to
- 10:42maybe when your phone is switched off because some days
- 10:43you wake up, you don't feel like it.
- 10:45You leave your phone off until 12.
- 10:47Your your people who sell for you, they need to be able to
- 10:49refer to something if they have a problem and try and sort it
- 10:52out before they can reach out to you later on.
- 10:56So these are the sorts of things that you have to be able to
- 10:58figure out. If you don't know how to figure
- 11:01out all these things before you start trying to onboard people
- 11:04to sell on your behalf, no problem.
- 11:06That's what people like me are here for.
- 11:08Then the whole thing about sales enablement is this sales
- 11:11enablement is just a fancy word for sales training.
- 11:14Not just sales training, but other facilities that people
- 11:17need to get the job done because there's certain kinds of
- 11:20technologies that people need. So if you have a job where, OK,
- 11:25let's go back to the sales, the shop where you sell Baby Gap
- 11:29and, and Mamas and Papas and stuff like that.
- 11:33So in your baby Gap store sales enablement will mean, let me
- 11:39see, OK, well, first of all, the lady in the shop, she needs a
- 11:44cell phone so she can store customers phone numbers in, so
- 11:47she can call people so that she can follow up things like that.
- 11:50So you need a correct phone that is there.
- 11:52And it shouldn't be 3310, it shouldn't be Nokia 3310.
- 11:55It should be something that you can store numbers.
- 11:58Maybe she can even follow people on Instagram if you are dealing
- 12:02with a high network, people who have high net worth, maybe the
- 12:07should should be able to follow those people on LinkedIn or
- 12:11whatever. But I mean, you get the point.
- 12:13It should be a correct phone. Well, a decent phone, even if
- 12:15it's a not a correct phone, it should be decent.
- 12:18So phone, phone call my phone. So that one is steady.
- 12:22Then there should also be a computer in the store and you
- 12:25know, with those fancy scanning things so that when you take it
- 12:28and you scan bleep, you know, it just shows on the invoice that
- 12:33it shows in the, you know, now those of you who do retail will
- 12:36show on the computer how many trolls that they buy and blah,
- 12:40blah, blah. And of course all of this thing
- 12:42will also be updating in ACRM as a customer relationship
- 12:48management tool. So that by the time I come into
- 12:53the store and I leave and the sales girl is done with the
- 12:55interaction, she'll be able to see there on the computer that
- 12:59Odogo Tavishima bought 4 pairs of baby trousers AT75K each.
- 13:06And then I also bought what else, Maybe two pairs of
- 13:13earrings for my wife at 120 K each.
- 13:17And let's see what else. Any.
- 13:19You get the point. But it will all be there.
- 13:21Odogo Tava Shima 1st of June came in.
- 13:25This is what he bought. Total order, blah, blah blah.
- 13:28If she's good at her job, she would have been doing some small
- 13:32talk with me so that she would now know that OK, the two
- 13:35trousers I bought her for my son and the two dresses I bought her
- 13:38for my nieces. And then the bangle that I got
- 13:41is for my wife and everything. So some of that in the CRM.
- 13:45But The thing is you need to have the all that computer tech
- 13:49and that CRM to begin with. And this is the whole thing
- 13:52behind sales enablement. You don't only give the person
- 13:55the training, give them the facilities that they need to get
- 13:59the job done. For some people, like in the
- 14:03banking space, I don't know about now.
- 14:05Now things have gotten really expensive.
- 14:07But when one of my cousins got into banking a long time ago,
- 14:11she started off before me. So let's say, let's say me like
- 14:1420 years ago, part of sales enablement then was making sure
- 14:17that the people had a car. It's not like they gave
- 14:20everybody one car. You know, there's no bank in
- 14:22Nigeria that is not paid off, though we give a salesperson one
- 14:25car. So what they used to do was
- 14:26there will be, there were different pools of cars, a
- 14:29driver to each car and I think each car to five people or six
- 14:31people and then you hit the road.
- 14:33So all of this, all of that, that's what we call sales
- 14:36enablement. Then on the thing about
- 14:39incentives, an incentive is just whatever it is that you do to
- 14:44try and ginger somebody to do more so you can see how this
- 14:47effects performance. So in this case, the incentives
- 14:51for sales people is going to be money basically, and other terms
- 14:56of service, but let's stick to money.
- 14:58So some people say fixed salaries.
- 15:01If you're my sales person, everybody earns 300K.
- 15:03No matter how you bring, everybody earns 300K.
- 15:07There's some people who say a base and then give Commission.
- 15:10So some people say, look, if you're one of my sales people,
- 15:12everybody gets 150K. That's the base.
- 15:16But you're going to get a percentage on XYZ, whatever it
- 15:21is that you can sell. And in those kinds of
- 15:23organizations, it's possible for a salesperson to earn 150K today
- 15:26because that's the base. But then next month, if they
- 15:29sell very well, they might earn 500K because apart from the 150,
- 15:33they've sold X amount. And so the compensation goes up
- 15:39or down. So that is called variable
- 15:42compensation. So either fixed salaries or
- 15:45variable compensation. I'm not going to get into the
- 15:48argument of which is better. Some people say fixed salaries
- 15:51is better, some people say that variable compensation is better.
- 15:55Although for people who say fixed salaries, especially
- 15:57people in the West, you know, people in America and in the UK,
- 16:00well, I think that's what works for your own clients.
- 16:03I don't think that would really work in Nigeria anyway.
- 16:06Let me not go into all that. But the most important thing is
- 16:09this. Sales is hard.
- 16:12Whatever it is that you decided, don't mess with it.
- 16:15If you told everybody 150, so you've told everybody 300 K
- 16:20every month, no matter how much we sell, then give them that 300
- 16:25K every month. The moment you start messing
- 16:28with it that and yes, initially I'd said, I'll give you 300 K
- 16:32every month, but you, you're not pulling our weight.
- 16:34You're not pulling our weights. Instead of 300 K, I'm giving you
- 16:36160. I'm giving you 280.
- 16:37I'm giving you aha, you started messing with their motivation.
- 16:40If you say it's 300 K, give everybody that 300 K every
- 16:43single month. If you're not happy with
- 16:44somebody's performance, you know, sack the person, get
- 16:46somebody else. Then for the variable
- 16:48compensation, if you told them it's 150K flat, that's the base
- 16:55and then you're getting 10% on every extra.
- 16:57Whatever you sell, just pay them what you said because there's
- 17:02some people who will say variable compensation, no
- 17:05problem. Today the person didn't sell.
- 17:08I give them 150K next month the person sells small are giving
- 17:11them money 200K. But then if the person works
- 17:15really hard in March and then the person sells and when you
- 17:21calculate the Commission you see that Commission is supposed to
- 17:23be 600K. If that is what you told them,
- 17:27pay the person the 600 Ki know it's hard.
- 17:30You're better off paying the person the 600 K first.
- 17:33Then later on, you don't call everybody and say, look, guys,
- 17:35in the beginning I told you that, you know, everybody's 150K
- 17:38flats. Then depending on how you sell,
- 17:40I'll be adding. But you guys have been crushing
- 17:42it. You're really going out of the
- 17:43park and I really appreciate that you're helping my business
- 17:44grow. Well, to be honest, man, like
- 17:47those margins are higher. Like is is is doing me, is doing
- 17:52me. Somehow I can't beat those
- 17:53margins. Again, have an honest
- 17:55conversation about it. Now you're going to be able to
- 17:58get some buy in and you're going to be able to review the thing
- 18:03and keep everything above board and people won't feel like
- 18:08you're taking them for a ride. Because I told you guys on the
- 18:11podcast about a guy I know here in Abuja who used to see who
- 18:14used to sell for a Benz and dealership.
- 18:17And this was the sort of thing that happened to him.
- 18:19He was doing it, he was doing it, he was doing it.
- 18:21And then, you know, usual now you get married and then you
- 18:23have children and girls like Amor and he stepped my game up
- 18:27and he did. He stepped his game up until one
- 18:29day or guy refused to pay him on the two M Commission so he said
- 18:34no problem. So once he collected his money
- 18:37for the month he left he said look I'm not doing this again
- 18:39and he left and he went someplace else.
- 18:41So if that's what you promise them, pay them.
- 18:44Don't mess with their don't mess with their motivation because
- 18:47selling is hard. Try and keep things constant.
- 18:51If you have to change do it in a very upfront above board manner.
- 18:55Would have been a different conversation if the owner called
- 18:58him and said, hey guy, you know what, you've been selling very
- 19:01well and I appreciate that. But bro, let me not lie you
- 19:05yeah, your Commission is supposed to be two M but because
- 19:08of what we've been suffering here in the office and cash flow
- 19:11and everything, that two MI won't lie.
- 19:13I can't pay that 2M now. So like how far you know, can I
- 19:17give you 1.2 and we'll call it Square Or if I'm paying you that
- 19:20two M, maybe this two M Commission will pay it over the
- 19:22next three months. You know that kind of
- 19:24conversation, things will be different.
- 19:26Most Nigerians are not unreasonable.
- 19:29And anyway, I'm sure you get the point.
- 19:32So, so you see how all these things now tie into how you can
- 19:38get people to perform well if you select the right person, you
- 19:43train them well, you incentivize them well, and you have a robust
- 19:47sales process that you've taught them.
- 19:49You've seen how these things can affect sales performance, but
- 19:56the different angle that I want to take now is this sales
- 19:59performance is contextual. So it depends on the nature of
- 20:02the problems that people face, and it also depends on the
- 20:05industry. So because of that, in
- 20:08tomorrow's episode and in future episodes, of course, I can't
- 20:11promise you how many episodes that will because you know how
- 20:13we do this podcast now, I just wake up and then I look at the
- 20:16question and then I answer the question for today.
- 20:18So I can't tell you that we're going to do it in five or in 10,
- 20:20but tomorrow has future episodes.
- 20:22We're going to tackle the problems on a case by case basis
- 20:26about what you can in what you can do to improve performance
- 20:30when you're faced with different kinds of difficulty.
- 20:33So the framework or the kinds of difficulties that we're going to
- 20:37be looking at are are people related issues, how do we deal
- 20:41with that, process related issues, how do we deal with
- 20:44that, market related issues, how do we deal with that?
- 20:47Because Nigeria, we're currently going through that.
- 20:50You know, the cost of fuel went up after the election, cost of
- 20:53living quadrupled, the price of everything has gone up.
- 20:56So right now in Niger, there's some serious market related
- 20:59issues because the thing that you used to sell before for
- 21:032500, because of how things have changed, you now have to sell it
- 21:06for seven, five. And then the Nigerian consumer
- 21:09is being pressed on all sides. Disposable income has reduced,
- 21:14you know, things like that. So there's market related issues
- 21:16and then there's also organizational issues.
- 21:18So those are the frameworks that we're going to look at it.
- 21:21How do we increase people's sales performance when they are
- 21:23faced with people related issues, process related issues,
- 21:28market or economic related issues and then organizational
- 21:31issues. So that's going to be the
- 21:33difference. We're going to try and identify
- 21:35the root cause of why sales starts to decline.
- 21:39Then we'll now see what kind of solutions that we can implement
- 21:44that will bring the results up. So more on that in future
- 21:48episodes. So that's all for today folks.
- 21:50Remember to connect with me on WhatsApp.
- 21:52The phone number is 08064662140. The country code is +234.
- 21:58For those of you who are not Nigerian, then connect with me
- 22:01on LinkedIn. I love hearing from you guys.
- 22:04My name is Tavishima Ayede. You can confirm the correct
- 22:07spelling of my name and you also have my e-mail address from the
- 22:10link where you're currently listening to this episode.
- 22:12Thank you very much for your time and attention.
- 22:14I'll catch you guys at the next episode.