nz sales manager e-magazine issue 69
DESCRIPTION
Short and sharp, NZ Sales Manager is a free e-magazine delivering thought provoking and enlightening articles, industry news and information to forward thinking sales managers, business owners and sales professionals, throughout New Zealand and the world.TRANSCRIPT
1 / www.nzsalesmanager.co.nz
MARCH 2013 Issue 69
NZ’s e-MAg foR sAles leAdeRs
Putting the U in your USPMeasure what gets results
Focus your prospecting
PROFESSIONALISING SALES
www.nzsalesmanager.co.nz / 2
THIs WeeK's MusT ReAd
PRofessIoNAlIsINg sAles
The UK National Sales Agenda
PuTTINg THe u IN youR usP
How to develop your unique selling point
MeAsuRe WHAT geTs ResulTs
Actions not dollars
ResouRCe CoRNeR
To sell Is HuMAN
The surprising truth about persuading, convincing and
influencing others.
QuICK fIx
foCus youR PRosPeCTINg
It’s not what you sell, it’s how you sell
CAleNdAR
THe Close
6
11
14
16
18
20
21
CoNTeNTs
3 / www.nzsalesmanager.co.nz
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fRoM THeedIToR
You may be wondering why we are
leading with an article about the
state of selling in the UK. I have long
held the belief that the purpose of
this magazine is to help the sales
and sales managers out there, but
also to help raise the importance of
selling in business and support the
evolution of selling into a profession.
Although the article addresses the
issues facing the UK, the issues
described here are global and very
relevant to New Zealand.
With respect to national standards
in sales, and sales qualifications, we
are at least seven years behind the
UK. Hopefully in New Zealand, 2013
will be the year that we can say the
first suite of sales qualifications were
formally introduced.
A stand out comment for me from
the article is from Beth Rogers, who
says refers to the performance of
Finland, where the “government
encourages sales education
because new companies in their
small local market have to go global
very quickly.”
Replace Finland with New Zealand –
we have the same challenge. What
we need now is the government
visibly encouraging sales education
in the way the UK are setting out
to do.
ABOUT /Short and sharp, New Zealand
Sales Manager is a free e-magazine
delivering thought provoking and
enlightening articles, and industry
news and information to forward-
thinking sales managers, business
owners and sales professionals.
EDITOR / Paul Newsom
ART DIRECTOR / Jodi Olsson
GRAPHIC DESIGNER / Sevim Dogru
GROUP EDITOR / Trudi Caffell
CONTENT ENQUIRIES /
Phone Paul on 04 586 4733 or email
ADVERTISING ENQUIRIES /
Phone Richard on 09 522 7257 or email
ADDRESS / NZ Sales Manager, C/- Espire
Media, PO Box 99758, Newmarket,
Auckland 1151, NZ
WEBSITE / nzsalesmanager.co.nz
IssN 2230-4762
NZ sAles MANAgeR Would lIKe To ACKNoWledge THe suPPoRT of ouR MAjoR PARTNeRs
Happy selling
Paul
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“My national team now sells consultatively as a result of the SalesStar.com’s interventions. We have had an overall (32%) improvement in closing ratios as well as a (27%) growth in top line sales with a better margin. They do make it easy to grow sales, and the positive results are instantly measurable.” Matt Cutler – MD Active Safety
COURSE
We make it easy
to groW your sales
Find the money-burning sales weaknesses that have held you back from your earning potential
learn the inside secret to positioning yourself as an industry expert
Discover how to seize on buying triggers to create a profound influence on your sales figures
Clear and develop the 4 question categories that uncover your prospects needs every time, amplify their passion, and convert like a dream!
MARCH 19 & 20 AUCKLAND CITYSimply click here to find out more or phone 09 5240999
“My national team now sells consultatively as a result of the SalesStar.com’s interventions. We have had an overall (32%) improvement in closing ratios as well as a (27%) growth in top line sales with a better margin. They do make it easy to grow sales, and the positive results are instantly measurable.” Matt Cutler – MD Active Safety
www.nzsalesmanager.co.nz / 6
PROFESSIONALISING SALES
www.nzsalesmanager.co.nz / 6
MusT ReAd
A new year is always a good time to take
stock, but 2013 is a particularly good time
to review the position of sales in the British
(and world) economies and to consider what’s on
the agenda. That’s because there remains a pressing
need to optimise business skills in the continuing
challenging climate, and there are encouraging signs
in the past few years that selling and commercial
skills and methods are receiving more attention.
How we move forward, building on this momentum,
could be critical to competitiveness and the target
we all want — recognition of the professionalism
of salespeople.
The UK National Sales Agenda
7 / www.nzsalesmanager.co.nz
At first glance, the signs are
not that great. Figures from
various sources show that there
are 25% fewer high performing
solution salespeople in the UK
than globally, that about 30% of
salespeople are in roles they are
not suited for, and that students
rank sales as lowest for status, job
security and satisfaction.
Ben Turner, sales director at
the ISMM, notes that buyers in
particular have a poor perception
of salespeople’s credibility, and
about half would not be proud
to sit on the other side of the
table and be a salesperson. “But
research by consultancy DDI,
in its global sales perceptions
report, shows that this is not just
a problem in the UK, but a global
one,” he says.
Generally, salespeople are mostly
ranked as only fair to good at
what they do — very few are
graded as excellent — and it’s
a middle-ranking performance
that does not appear to be
improving, at least as judged by a
majority of buyers.
What hasn’t helped in the UK is
the string of mis-selling scandals
and high pressure tactics of
the utilities and mobile phone
companies, and it seems that
no sooner than one approach
is curtailed, another appears,
whack-a-mole like, such as the
current spate of automated
calls about payment protection
insurance and the dreaded ones
about checking your PC for
viruses, although most of those
come from abroad.
B2B selling as well is by no means
immune to poor and sometimes
unethical practices, such as
massive fines in the US for drugs
companies misrepresenting
their offerings in the healthcare
supply chain.
What the ISMM has now started
is a campaign to put selling
on an equal footing with other
professions to address these
shortcomings, building on some
already solid foundations. There
is plenty of material that gives
strong leads on what ‘good’ looks
like in selling, such as the annual
surveys from CSO Insights and
Miller Heiman, which give many
and detailed metrics on what top
performing sales organisations
tend to do better, and any
number of sales methods and
salesperson performance rating
books, consultancies and training
firms. But as Turner points out,
what is required is the kind of
research base that colleagues
in marketing have developed,
and this should be underpinned
by a partnership between
government, academia, industry
and institutes such as the ISMM.
This is where there is some
encouraging progress, as the UK
now does at least have a set of
National Occupational Standards
for sales, developed in 2006 by
the National Sales Board.
In turn, in England and Northern
Ireland, Ofqual is the agency that
then regulates awarding bodies
for qualifications, which includes
the ISMM — and on Ofqual’s
website there are no fewer than
67 ISMM sales qualifications
from levels 1 to 6 that conform
to the Qualifications and Credit
Framework (QCF), and which
are based on the National
Occupational Standards and
available to training organisations
approved by the ISMM to deliver.
If that sounds complicated, it
is — and there just isn’t enough
promotion by government of the
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importance to ‘UK plc’ of the benefits that properly
accredited and researched training frameworks
can bring to the workforce. That said, as Turner
points out, the situation for sales is far better than
a few years ago — with the interest now in sales
academies, in particular, there are now several
thousand sales and sales-related personnel taking
these qualifications, rather than hundreds, in major
companies such as AXA, BT, SIG and Virgin, and
there is also strong interest from overseas for
this approach to sales learning, which the ISMM
is promoting.
“It’s not about a particular sales methodology but
about salespeople understanding that there is a
range of approaches that can be applied to their
profession,” says Turner, who adds that the current
trend to focus on value applies as much to what the
salesperson brings to the table as professionals as
to their solutions. It’s a view reinforced by work by
McKinsey, which we reported in 2010, that buyers
most value the ‘sales experience’ they encounter,
and respond best to fewer, meaningful and highly
knowledgeable interactions.
More recently, we ran an in-depth article by Nick
Lee, professor of marketing and organisational
research at Aston Business School, and Ian Luxford
of Grassroots, on research on the qualities that
people associate with salespeople.
Given that there are hundreds of thousands
of sales and sales-related personnel in the UK,
there is huge scope to enlarge the reach of sales
professionalisation, building on the standards
and qualifications, although these are by no
means the last word in what works, and there is a
MusT ReAd
9 / www.nzsalesmanager.co.nz 9 / www.nzsalesmanager.co.nz
MusT ReAd
major opportunity for the UK
to become a leader in more
research. What is needed? Says
Turner: “We asked Nick Lee, who
has strong sales interests, what
it would take to position the
UK in selling, as marketing did
successfully several decades ago.
About £40 million was his answer.
“That may seem a large sum but
not when set against possibly
a million customer-facing staff
generating more than a trillion
pounds worth of business year
— but presently the government
ranks selling lower than
hairdressing in its priorities.”
What there appears to be — and
which is a common government
failing — is a lack of ‘joined-up’
thinking, such that initiatives
started a few years ago tail off,
and different departments have a
fragmented piece of the action,
such as it is. A good example is
the position of business studies
in school and higher education
— the 14–19 diplomas started
by the last government now
have lukewarm support, while
the interests of industry are split
between the Department for
Education and the Department
for Business, Innovation and
Skills. On business studies
courses, such as A levels, selling
is rarely mentioned as part of
the curriculum, despite the
government’s own surveys,
by yet another body, the UK
Commission for Employment
and Skills, showing that sales
and customer service are among
the skills most lacking in the
workforce and are also among
the jobs with high vacancy rates.
There are more young people
taking up sales apprenticeships
now, but relatively few compared
with other subjects such as
business administration.
A few bright spots are in some
schools that have adopted ISMM
level 1 and 2 sales qualifications
as part of their business
studies teaching.
Beth Rogers, head of marketing
and sales at Portsmouth Business
School, who was on the National
Sales Board, comments: “I fear
that other countries are
going to overtake the UK on
sales skills. It will not come as
a surprise to anyone that sales
education is currently booming
in the US, because business
sponsors of higher education
want sales-ready graduates.
“What may be more of a wake-up
call for the UK is the performance
of Finland, where the government
encourages sales education
because new companies in
their small local market have
to go global very quickly. In a
developed economy you don’t
get to grow fast internationally
by being cheaper at anything,
www.nzsalesmanager.co.nz / 10www.nzsalesmanager.co.nz / 10
MusT ReAd
This article provided by IsMM, and first appeared in the january issue of ‘Winning edge’. To find our more visit www.ismm.co.uk
“It’s not about a particular sales methodology but about salespeople understanding that there is a range of approaches that can be applied to their profession.”
you get it by knowing how to
grow your revenue by being
smarter and better at creating
value for customers with very
different needs.”
Adds Rogers: “The labour market
report for sales commissioned by
the government in 2008 revealed
huge gaps in the sales skills
needed by employers, and post-
recession, in 2012, the
latest report for
sales shows
the same
problem
persists.
We have world-
class occupational
standards for sales, but more
publicity is needed to ensure they
are leveraged by UK plc. The
government quite rightly pays
attention to legislating against
bad selling, but policymakers
should consider how important
it is to encourage good selling in
its place.”
Rogers was one of a group of
sales activists invited to a House
of Commons roundtable recently
by Toby Perkins, shadow minister
for small businesses, and the
ISMM, to discuss sales skills
and qualifications as part of the
campaign. Perkins is a rare MP
— he has a sales background —
and is firmly behind the push for
raising the bar for the profession.
“I went into telephone sales
straight from school, was in IT
sales for seven years and in sales
and sales management roles in
the recruitment industry,” says
Perkins, who adds that he was
initially placed with an employer
by a specialist sales training firm,
as companies such as Pareto Law
do today. He has also run his own
company, Club Rugby, a rugby
kit distributor.
Perkins sees a big gap in what
he terms ‘enterprise skills’ at
all levels, and would like to see
much more emphasis on such
skills in education and work
experience. He points out that
students often have completely
unrealistic expectations about
jobs and careers — “There just
aren’t many jobs for forensic
scientist for kids who’ve been
watching CSI Miami — but about
10% of jobs in the UK are in
sales.” He agrees that selling
has been largely written out of
business studies courses, and it is
a particular problem for his remit
— small businesses — which tend
to lack the resources to train
their own people and must rely
on the market. More joined-up
work between education and
business, helped by government,
is certainly needed, says Perkins,
noting that apprenticeships
are not being pushed enough,
and ideas such as more
businesspeople on school
governing bodies are among
those he is investigating.
Overall, Perkins sees the
application of standards as
charting an ethical framework
for a very large range of
professionals, from junior level
out of school, as he was, up to
those earning a lot at the top of
their careers in sales and sales
management. “There should be
a supportive role for government
and after the initial roundtable I
will be learning more about good
practice and what the landscape
looks like around the country.”
11 / www.nzsalesmanager.co.nz 11 / www.nzsalesmanager.co.nz
The phrase Unique Selling Proposition (USP)
was coined in the 1940’s by Rosser Reeves of
Ted Bates and Company. Reeves was a smart
man for the times, he also came up with the slogan
“melt in your mouth and not in your hands” amongst
other hugely successful advertising campaigns.
BUT IS HIS CONCEPT STILL RELEVANT TODAY?
We can all get put off by jargon, but whatever
you call it, a USP is still the single most important
marketing element in your repertoire. Don’t let the
old school language put you off. It’s very much
How to develop your unique selling point
By Heather Grace Smith
PUTTING ThE U IN yOUR USP
www.nzsalesmanager.co.nz / 12
the right school of thought, as
relevant now as then, and it will
be long into the future.
Reeves broke his concept
of USP down into three
separate components:
• The proposition must be
unique (not shared by the
competition).
• The proposition must be
strong enough to have mass
appeal.
• The proposition must clearly
specifically explain the benefit
to the purchaser.
IS IT REALLY THAT EASY?
Well, it’s not easy for most people
to define their USP; it takes a bit
of work. But a good USP makes
it really easy for a customer to
recognise and resonate with your
business’ offering so it’s well
worth the effort you put in.
WHAT MAKES A GOOD USP
IN 2013?
A good place to start is your
point of difference. For example,
‘great customer service’ is not a
point of difference – everyone
claims that. So you need to
find out what is unique about
your business and that means
researching your competition to
discover what you do differently.
Difference isn’t enough though.
To have a true USP, that point
of difference has to offer real
benefits to your customer. What’s
changed between the 1940’s
and now is that many companies
have more than one product
or service – so you need to be
thinking about the USPs for each
of them. Aiming for a one-size
fits all approach from the get-go
tends to water down your USP.
It’s better to start with the detail.
SO HOW DO YOU COME UP
WITH A GOOD USP?
There are four key steps that will
help. Firstly, understand what
your competition does badly;
never bag the competition,
but do get to know where you
perform better. That way, you
can turn their mistakes on their
head and reframe it as a positive
proposition for your customers.
That brings me to the second
step – understand your
customers’ and the problems
they’re having or trying to solve.
If you can solve their problem,
you’ll make a connection.
Thirdly, you need to believe in
yourself, give your customer
evidence and assurance;
guarantee your promises.
Guarantees help you achieve
mass appeal – look at Bunnings
for example.
Finally, you have to understand
your target markets and get the
details right for them. If you’re
selling an anti-aging as well as
an anti-acne skin care regime,
you can’t expect your different
audiences to buy from one
single message. Put time into
developing the USP for every part
of your market. From there you’ll
find the overarching truth for your
proposition as a whole.
13 / www.nzsalesmanager.co.nz
It can seem daunting to come up with a USP but talk
to the people who know; your team, your clients,
and importantly get external advice. Turn features
into benefits and check your assumptions –
IS THAT BENEFIT REALLY RELEVANT TO YOUR
TARGET AUDIENCE? DO THEY REALLY CARE?
A single competitive advantage does not always
mean a strong USP but combining them can. So if
you look at your top four competitors, chances are
you’ll find a number of elements that you do better
than each one of them. That’s where you’ll find your
USP, by combining the special things you do so that
no other competitor can match it all.
Once you have the detail, your USP needs to be
succinct and visible at every point of contact; from
websites and packaging, to every member of your
team being able to explain it readily and easily. If
you need help to achieve that, get the help you
need because when you get it right, it’s meaningful
to the right people and it works. By the way, don’t
forget to update your USP from time to time as your
business evolves, it important you stay relevant to
your target market.
At The Marketing Company we say ‘make more
money in your business’ because our courses are
designed to give you the best value in the least
time, we help you with access to funding for our
training while we deliver measurably increased
expertise, we offer a guarantee on your spend with
us and we allow you to select the courses you most
require. Other companies offer some of that, but we
offer it all – that’s what gives us our USP.
for more information or guidance, contact Heather grace smith at The Marketing Company. To find out more visit www.themarketingcompany.co.nz
DISCOVERWhat do you do better than your competition? Where do they fall down? Don’t make the story about them, turn it on its head and make the story about what you do well.
COMMUNICATE Understand your customers. What problems are they trying to solve? Find a solution and check it works for them. Then you can make a connection.
PROMISE Believe in your promises and assure your clients. Give them a standard that you won’t fail to meet. Be accountable and be up front.
TAILOR Understand your proposition’s appeal for each target market and tailor your approach, messages and solutions for their real needs. Your overarching USP will come from your groundwork with the detail.
Find your USP
www.nzsalesmanager.co.nz / 14
Actions not dollarsBy Richard Gee
MEASURE whAT GETS RESULTS
2 MINuTe ToP-uP
Many sales managers and business owners
get it wrong when they measure sales
force results.
They measure money earned, instead of actions that
need to be taken to achieve the revenue budgets.
Rather than only measuring sales in dollars per
week, you should be measuring activity. For
example measure the face to face calls per day
over a week, then measure the effectiveness of the
calls by how many became sales or quotes. This
demonstrates that the sales person is using the
employable skills they have.
15 / www.nzsalesmanager.co.nz
Richard gee is the author of NZ sales Management – a practical approach, Practical Marketing in NZ, and other books, plus is an International speaker and sales trainer. To find out more visit www.geewiz.co.nz
A good measureable target is four face to face calls per day for five days. Twenty calls in the week will generate quotes and follows ups into business. Similarly customer service teams
might make 10 calls per hour to targeted customers and achieve measurable results of appointments made
for the sales representatives. Measure the numbers of actions, and you will get
the dollars to happen.Maybe
this
measure will
show they need training
to get better results, but it really
goes to the heart of the performance. Poor sales
are always the result of poor face to face activity. If
you don’t get in front of the customer and identify
problems to solve, then you don’t get sales.
Evidence or excuses of emails and phone calls
being done are things that should not be measured,
they are tools of the job, just like the presentation
tools of the laptop or i-pad.
A good measureable target is four face to face
calls per day for five days. Twenty calls in the week
will generate quotes and follows ups into business.
Similarly customer service teams might make 10
calls per hour to targeted customers and achieve
measurable results of appointments made for the
sales representatives. Measure the numbers of
actions, and you will get the dollars to happen.
Support
your
sales team by
sharing the numbers
at sales meetings and get
them to share their success and wins
from their measured activity, and encourage each
other to practise their sales skills more often.
It is a New Zealand statistic that sales reps only
spend 2.5 hours per day in front of customers selling
to them. Ask yourself what they are spending the
rest of the time doing. Is it driving or admin, or is it
time wasting stuff. You employed the sales rep to
sell, not spend 75 per cent of their time doing other
stuff that does not earn revenue.
Measuring the correct actions makes it easier to
manage the performance and there will be no
dispute of actions. It is black and white - calls done,
quotes done, follow up done, sales made.
Focus your sales team on what really matters and
what will be measured, not on uncontrollable stuff.
It really does work.
www.nzsalesmanager.co.nz / 16
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To sell IsHuMAN
THe suRPRIsINg TRuTH AbouT PeRsuAdINg, CoNvINCINg ANd
INflueNCINg oTHeRs
Authors: Daniel PinkPublisher: Canongate Books Ltd.Price: $20.99 from www.fishpond.co.nz
we’re all in Sales now. Each day millions
of people earn their keep by convincing
someone else to make a purchase.
They sell planes to airlines, oil shares to sheiks,
cars to drivers. They sell consulting agreements,
magazine subscriptions, time-shares, double glazing,
broadband, fitted kitchens, car insurance, life
insurance, pet insurance! Some work in fancy offices
with glorious views, others in dreary cubicles, but
most look exactly like you. In fact, each and every
one of us spends time trying to persuade others to
part with resources - money, time, attention - though
most of the time we don’t realise we’re doing it.
Parents sell their kids on going to bed. Spouses sell
their partners on mowing the lawn or putting the cat
out. We sell our bosses on giving us more money
and more time off. And in astonishing numbers we
go online to sell ourselves on Facebook, Twitter and
in Match.com profiles. In this new book from the
bestselling author of Drive, Dan Pink explores the
ways in which we can all improve our sales skills,
in every area of our lives and identifies the three
personal qualities and four essential skills necessary
to move people. Relying on science rather than
platitudes and analysis instead of exhortation, Dan
builds on his own sales experience and on the profiles
of some of the world’s best salespeople - and makes
us look again at our own sales skills.
17 / www.nzsalesmanager.co.nz 17 / www.nzsalesmanager.co.nz
ResouRCe CoRNeR
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Call 0800 944 400 or visitwww.questapartments.co.nz
We’re extending ournetwork, so you can too.
Your perfect travel companion.l i
Serviced Apartments
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QuICK fIxIT’s NoT WHAT you sell, IT’s HoW you sell.
FOcUS yOUR PROSPEcTING
you know if your sales
role demands that
you prospect for new
business, and if so, then the quality
of your prospecting will determine
your sales success. But how do you
act on this and ensure your time is
well spent?
What does quality prospecting
look like? Can you write down
the characteristics of a good
prospect? If you are sitting there
thinking that you target your
prospecting at SME’s, that is
most of NZ’s business. You will
be wasting your time on most
of them.
Take time find the specific things
that are common to your quality
prospects. If you are not sure,
look at your existing customers
and consider the reasons why,
when and how they became your
customers, and have remained
your customers.
Now go and focus
your prospecting.
www.nzsalesmanager.co.nz / 18
19 / www.nzsalesmanager.co.nz
2013
CAleNdARdATe NAMe PlACe CoMPANy lINK
Tuesday 2th April Cold Calling and Prospecting
Auckland Top Achievers Sales Training
www.topachieverssalestraining.co.nz
Wednesday 3th April Winning through Powerful Presentations
Auckland Shipley NZ http://www.shipleywins.co.nz/public-training-schedule.html
Monday 8th April Winning executive summaries
Auckland Shipley NZ http://www.shipleywins.co.nz/public-training-schedule.html
Monday 8th April -
Tuesday 9th April
The sales Process Wellington Bright*Star Training
http://www.brightstar.co.nz/training/sales-process
Wednesday 10th April Customer focused Writing
Christchurch Shipley NZ http://www.shipleywins.co.nz/public-training-schedule.html
Wednesday 10th April -
Thursday 11th April
Advanced selling Wellington Bright*Star Training
http://www.brightstar.co.nz/training/advanced-selling
Wednesday 10th April -
Thursday 11th April
Advanced sales development
Auckland David Forman www.davidforman.co.nz
Thursday 11th April social Media and sales Auckland Top Achievers Sales Training
www.topachieverssalestraining.co.nz
Thursday 11th April Professional Relationship selling
Tauranga The Marketing Company
http://events.themarketingcompany.co.nz/courses/3-professional-relationship-selling
Monday 15th April -
Tuesday 16th April
sales Negotiation for Results
Wellington Bright*Star Training
http://www.brightstar.co.nz/training/sales-negotiation-results
Tuesday 16th April sales basics Auckland Geewiz http://www.geewiz.co.nz
Tuesday 16th April Prospecting & gold
Calling
Auckland The Marketing Company
http://events.themarketingcompany.co.nz/courses/21-prospecting-gold-calling
Wednesday 17th April sales Management Auckland Geewiz http://www.geewiz.co.nz
Tuesday 16th April -
Thursday 18th April
scotwork Advancing
Negotiating skills
Auckland Scotwork Negotiating Skills NZ
http://www.brightstar.co.nz/training/sales-process
Thursday 18th April Key Account
Management
New Plymouth
The Marketing
Company
http://events.themarketingcompany.co.nz/courses/23-key-account-management
Thursday 25th April sales Training Course Christchurch Top Achievers Sales Training
www.topachieverssalestraining.co.nz
www.nzsalesmanager.co.nz / 20
21 / www.nzsalesmanager.co.nz2013 21 / www.nzsalesmanager.co.nz
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THe Close
“Your most unhappy customers are your greatest source of learning.”
- Bill Gates
“Your most unhappy customers are your greatest source of learning.”
- Bill Gates