One issue that makes this complex is that you will find experts, such as myself, on two very different extremes with a long continuum in between.   Uncommon Sense says that no product knowledge on the part of the sales person is necessary as long as the company has expertise.  More in the middle, Sandler believes that the sales person should have lots of product knowledge but use it sparingly.  On the other extreme would be systems like Natural Selling that believe product know is “essential.”

A second issue is that context matters.  In other words, to answer the “how much” question in your organization, you should consider factors like your lead generation vehicle (does it educate the prospect to the point that they are an expert?), your strategy, your approach, availability of people with the product knowledge in your market, your organization’s ability to train the product knowledge, and at least three more that come to mind.

Third, you will find that MANY sales people really like/need to be experts. For some, it will tend to cover part of the selling anxiety they have (I know sales people aren’t supposed to have selling anxiety, but let’s be real here). For others, it simply assists their confidence or the “conversation they have in their head” about themselves and their chosen profession.  Another group takes pride in knowing something the customer doesn’t, and it just flat feels great to dispense it.  Finally, there is the group that likes to have the knowledge that really helps people.   (A quick caution about this group, if you are in a business where “consulting” is part of the service, this group can tend to give it away. )

Look.  Regardless of the why, product knowledge is an expectation of many professional sales people and of many organizations.  However, it will take some thought to determine “how much” is right for you.

Finally, I would point out that different sales leaders define product knowledge differently.   Often you will see product knowledge defined as an understanding of a company’s offering and their company’s policies and procedures relevant to selling.  A simple example would be when the sales person knows that the product could solve a particular problem for a customer, comes in three configurations – one that requires installation and two that don’t – and can be delivered in three weeks.

For tangible goods, this often looks like product specifications.  For non-tangibles, this is more about understanding the potential applications, customizations that are possible, and the impact on pricing.  For hybrid sales that are for both goods and services, you can see how this can get infinitely more complex.

And one last point on the definition.   Some sales leaders regard industry or customer-specific knowledge as product knowledge.  At least from a training standpoint, it gets lumped in that bucket.

In part two of this post, we will examine all the areas where not having a clear answer to this question will, without doubt, cause inefficiency.

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The first place to look is the recruiting and selection process.   If there are 1,000 people looking for a sales position in your market, the number of people that have the background, qualifications, relationships and skills that you want will likely be a substantially small number.  Having the product knowledge you want, or having sold into the same market, reduces the number even further.  And then you still have to cross the hurdle of getting them to accept your company’s offer!

What I am getting at here is that a requirement around product or industry knowledge can throw out many candidates that could be perfectly valuable to you and your organization.   I am not suggesting that product knowledge isn’t important.  Only that you should really understand the impact it has on recruiting your team.

Next we can look at “on-boarding” someone new.   In real time, for most sales people with experience, product knowledge can be the bulk of their on-boarding time.  To consider a sales person productive, they need to be able to engage a prospect throughout the whole process and close sales by themselves.  A sale that requires a lot of product knowledge can slow this down significantly.   In most organizations, I find there is a way to have that person “selling” within a few days while the acumen around product knowledge is still pretty low.

You also have a decision to make around the part of product knowledge that is related to knowing the market and understanding the customer base.  Many companies choose to train this by using their internal market knowledge.  This knowledge is laden with our company’s perspective, our own Kool-aid, if you will.  If the sales people we are selecting are confident enough to do it, I find they can be quickly educated by the market and the current customer base.

There is a great deal of selling cost tied up in on-boarding people until they are capable of being productive on their own.  Just be clear that every product knowledge hurdle increases this cost.  If you are strong and efficient with selection and your retention of the sales people is well above average, this may not be a problem. For many of you, understanding this can be important.

Finally, as I alluded to in Part 1, some sales people use their product knowledge like a crutch.   It can inhibit their success both in the early stages of on-boarding and in their later productivity with you because of how it changes their sales conversations.

As a recap, am I suggesting that product knowledge is bad?  Far from it.  I am suggesting that as a sales leader you should make some definitive decisions about how much is necessary in the recruiting process, how much they really need to know before they are “on the phone” and finally, how you are going to efficiently and effectively get them the necessary product knowledge.

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Put yourself in this scenario: You’ve just been hired as the new sales team leader – vice president of sales with a charge to turn around a stagnant and seemingly unmotivated team smack dab in the middle of the most challenging economic times in the past half century.  Yikes!

You’ll need some strategy – and some questions.  First, your strategic sales team plan, four strategies to implement right away:

• Ask questions. Meet with your sales team (conference calls work in a pinch) and brainstorm to identify the top three – only three – key activities that lead to the fastest, cleanest, most profitable sale for your company.

  Once you’ve defined these key elements, begin to orient your energies and systems to create more time for the three elements. By getting all your sales people involved in this process you build trust, focus and create more accountability because team members are giving you answers based on sales data and experience.

  No more excuses for failure if they don’t follow the formula they all agreed is the right one.

• Create more accountability. Implement a weekly or bi-weekly reporting system that shows you all activity – calls, meetings, proposals, quotes, proposals, tradeshows, letters sent and the like to get a handle on where the sales team’s energy and time is spent.

  You may find some misguided players whose compass simply needs to be reset.

• Install an incentive plan based on activity. Define a “qualified customer,” then create a reward system for activity that will lead to sales (i.e., the three keys the team agreed are critical to making more sales). Offer, for example, a $250 check for every proposal or meeting; or on-site visit; or major account important enough for you to attend the meeting personally.

  You will immediately see who’s motivated and disciplined enough to attack activity that leads to accomplishment. (Yes, you still pay them the commission, as well.)

• Homework assignment. Ask each sales person to write their 30/60/90/120-day sales and marketing plan to grow sales in their region, and e-mail it to you within three days. This simple request will astound you in revealing who are the thinkers, the doers, the procrastinators, the smoke ‘n mirror gamers and the weak writers.

  This exercise also gives you keen insights to how to utilize various training and motivating techniques, as well as enhance all written correspondence going out on company letterhead.

It will take less than one week to implement the four strategies, with little cost. The results and learning you will glean will enhance your knowledge, create more energy in the sales team and show your new boss that you were worth paying the big bucks to join their team.

You’ll also want to learn the personalities on your team. Based on research that indicates past success is a key predictor of future success and that, indeed, you’re looking for success, here are some behavior-based questions to ask in one-on-one discussions with your sales people.

The questions are conversational, non-threatening and created to generate life stories that will help you better understand each individual’s drive, life experience, sales training, personal status, behavioral patterns and how the person organizes their life.

Armed with this meta analysis, you can gauge who on your staff will best benefit from additional sales training/coaching – and who may not be worth additional investment at this time.

•1) Why don’t you start?  What question do you have for me?

•2) What would really surprise me about you?

•3) For a prospect:  What’s your real motivation to change jobs? Now what’s the real reason?

•4) What’s your philosophy on goal setting?

•5) What reading material would I find on your coffee table (or nightstand, kitchen table, car)?

•6) Tell me about a situation that placed you in an ethical dilemma?  How did you handle it??

•7) How did you earn money in college?

•8) How far away from home have you traveled? (Have a map on your desk.)

•9) Draw a pie chart showing how you spend an eight-hour day.

•10) Are you a curious person? If so, give me an example.

•11) What’s your favorite success story?  How about a failure story?

•12) What should I have asked you that I haven’t?

•13) Want to be a millionaire? Why? What are you doing to prepare for it?

•14) How would your world change if you made $35,000 more next year?

•15) For a prospect:  Are you ready to resign from your job in five days? What will they do when you quit? What will they say about you after you have left the company?

•16) Share some stories about the four most influential people you know.

•17) Have you ever created a 30, 60, 90-day strategic plan for your job or a future job? Give me the outline of such a plan now.

Got a question of your own to ask author Russ Riendeau?  You can reach Russ at www.russellriendeau.com or 847/381-0977.

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Behavioral scientist. Senior Partner, The East Wing Search Group.
Co-author, The CEO’s Guide To Talent Acquisition: Finding Talent Your Competitors Overlook (Eyecatcher Press 2008)
Nationally known speaker on retention strategies and peak performance.
Watch Russ at www.RussRiendeau.com. Email him at russ@RussRiendeau.com.

Article Source:http://www.articlesbase.com/sales-articles/great-questions-reveal-more-than-just-great-answers-how-to-find-the-sales-talent-you-need-today-812865.html

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