Episode 180, The 60% Rule!

Simplify Your Sales and Business meetings. Lisa Thal is an Author, Speaker, and Business Coach. She has over 35 years of marketing, sales, and leadership experience. She wrote the book "Three Word Meetings."  Lisa coaches leaders on simplifying sales and business meetings with fun and interesting 3-word topics to create a conversation and inspire your sales team.

 

Episode 180, The 60% Rule!

 

Many of you have heard about the 80/20 Rule; 80% of your results will be produced by 20% of your effort. Or if you're in sales, 80% of your billing comes from 20% of your accounts.

 

Have you heard about the 60% rule? Before I explain the benefits of this principle, let's look at what it means to focus and have discipline.

 

In Merriam-Webster, focus means "to fix (as one's attention) steadily toward a central objective," and "discipline" means "to train to do something by controlling [your] behavior." 

 

It's us determining how and where we plan to focus our efforts.

 

The best salespeople know where and how to spend their best efforts. They know that 20 percent of their prospects will buy from them no matter what they do or say, and 20 percent won't buy from them no matter what they do or say. That leaves 60% of prospects or customers we must focus efforts on to convert into clients. It takes ongoing discipline and commitment!

 

I want to share a story from this week where this principle applied. I was in a coaching session with a team member discussing their next year's business desired results. Our conversation focused on how busy he was and stressed about how he would get everything done. It's the end of the year, so we are busy setting up renewal meetings to secure business for next year. It's the holidays, so we have fewer days with clients taking vacations and you taking time off. You are booking new meetings to replace the business that may not return. Your thinking to yourself, how will I get all this done?

 

Do any of you feel this way? The word stressed, overwhelmed, or sheer panic you may be feeling. This time of year can be overwhelming and, in most cases, feels like we are starting over.

 

I asked him what his most significant stressor was. I have key account annuals; these accounts are the 20% of clients who will buy from him. I have client requests, internal requests, and emails filling my inbox, not to mention the mental stress. I need to spend time on it, and I feel like my days are getting away from me. 

 

I agreed with him that, especially at the end of the year, fewer days in the month because holidays and vacations can leave us feeling a bit more stressed. Setting priorities and time to focus was step one. I then offered a possible solution centered around the word discipline. It takes discipline in your mind and actions to accomplish what you need to get done.

 

He shared that priority one is renewing his current clients. I agree that he invested too much time over the year and, in some cases, years of building a solid relationship and reputation. He needed to identify blocks of time where he could focus on his 20%. We discovered that 11 am-1 pm would be the time he felt would be the window of time to develop his recommendations for the following year. He agreed to block that time on his calendar, turn off his phone and avoid looking at emails. He realized he could build the proposal and be resourceful by tapping into sales support to put his strategy into a compelling format.

 

What we came to realize is that sometimes this list that builds in our minds seems insurmountable. When we slow down, write down our priorities and first focus on the 20% of our clients that will say yes and let go of the 20% of accounts we shouldn't be calling on, then zero in on the remaining 60% we have a discipline plan.

 

Filter your clients

It takes focus to stay on track and target the right customers with a business need you can solve along with a budget to solve their problem. I know we want to help everyone we meet. Sometimes we waste time trying to convince someone to do business with us. They are not a fit for your company or don't have the budget. That is why you need a client filter process. Depending on your industry, you should have data to support the ideal customer you can help. Some filters are the revenue of the companies, the size of the companies, and the growth of a company. Step two is to stop focusing on the 20% of clients that won't buy from you no matter what you say or do. 

 

Step three is where you focus your time and energy on the remaining 60%. These accounts need to go through your filter, and you quickly determine if they are the right account to focus your time and energy on. 

The old saying, "Time is money," is so important. So choose your time and accounts wisely!

 

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Learn more about Simplifying Your sales meetings using 3-word topics at http://www.threewordmeetings.com.