Rory Sutherland is one of my favourite Mad Men!
As an advertising man, he’s a very clever thinker and his thinking range far exceeds advertising, his main career, but here are some of his thoughts on his chosen field of interest.
“Selling is brain2brain. To become ten times better at selling you have to become ten times better at thinking. Why?
Because, strategically, selling is a skill of your brain not of your mouth or your feet.
Tactically, your mouth and your feet may or may not be involved.”
– Michael Hewitt-Gleeson
Oldsell is the American Theory of Selling which is the salesperson closes the sale. Newsell is the Australian Theory of Selling which is the customer closes the sale.
Oldsell leads to product selling and call reluctance. The oldsell expectation is often one call = one sale and may be re-inforced by a culture of “Did you get the sale?” when you get back to the office.
Unless they are price-shopping for commodities, customers hate product selling. They become un-cooperative and salespeople, sensing this, become reluctant to make calls with un-cooperative customers. As a result, customer conversations can sink to less than one per hour per salesperson. This opportunity cost is unsustainable for shareholders.
Customers prefer newsell because it’s all about them and not the product. They become engaged, co-operative and interested in the value of potential gains and benefits. Salespeople respond positively to engaged customers and become confident and willing to make many more calls. As a result, customer conversations can be raised to more than one per hour per salesperson.
(These numbers are just an example. Each business has it’s own historic homeostatic number of CCs (customer conversations) and we can work with whatever is the base number for Insurance House Melbourne. It has been my experience, that when accurately measured, many businesses are shocked at their actual CC number and how much lower it really is, than they had assumed.)
To the business itself, the difference between more, or less, than one customer conversation per hour per salesperson is the revenue difference between night and day. This revenue difference also has an impact on the value of the business as an asset and therefore on the total shareholder return.
Training a newsell team can demonstrate two things:
how the number of customer conversations per hour salesperson (CCs) can be raised, and
how the direct impact this has on the customers can be measured by new referrals.
After training these gains can be dollarized in terms of business KPIs and metrics like, # sales, $ increases, % participation, CCs, # referrals and, ultimately, WOMBATS.
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How to escape from logical thinking, today!
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What they say …
Jack Welch, Chairman of GE (1981-2001).
I wish I had a management team that really understood Michael’s x10 thinking because It’s the value-added role in the management process.
Sir Gus Nossal AC FRS, Chairman of the Gates Foundation’s Discovery Expert Group.
I like its simplicity and its directness. I like the facets of humour. I like the design which makes it so easy to read.
Andrew Bassat, CEO and co-founder of SEEK.
I’ve gone through it on my iphone as suggested. lots of interesting thoughts
Professor David Penington AC, former Vice-Chancellor, University of Melbourne.
A commendably sharp and pointed document. Easy to read.
Maria Deveson-Crabbe, Telstra Business Woman, 2014.
So exciting. if we could de-operationalise bad philosophy (in the same way we avoid viruses and addictions) we would abound with a lot of x10 energy for fun and work-life balance.
Peter Dale, CEO of Volgren Marco Polo, Australia’s largest bus manufacturer.
I just had another read of your new book on my iPhone. x10 is truly such a great concept. Easy to read, punchy and fresh! Congratulations.
Professor German Spangenberg, Executive Director of AgriBio Victoria.
I loved it! I couldn’t stop opening the file and reading it to the end on my iPad!
Scott Wilson, CEO of iSelect.
Wombat selling has now become our corporate mission.
HE Count W. Brind Zichy-Woinarski Q.C.,
it gave me much pleasure to read it and brought back some of my father’s sayings and made me remember just how much he taught me.
Jason Crombie, Editor In Chief, Monster Children.
Love it. I like that it’s quick and easy to read, and the information is easy to digest. Makes me want to find out more about WOMBAT and x10.
Ross Campbell, Principal RCA Crisis Management.
Slamdunk! What good timing for this. A great read and very relevant values for the current market — who are confused and concerned.
Dr Graham Mitchell AO, Advisor to Australian Governments on Innovation.
Thoughtful, entertaining and memorable. Thank you for sharing your insights, Michael. Bloody marvellous!
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