You're Managing Your Sales Team Wrong Ep 173

In this episode of the Gym Secrets podcast, Alex Hermosi of Gym Launch details his "Closer Framework" for sales success, emphasizing the importance of managing both the sales conversation and the sales team. He highlights the need for clarifying customer intentions, labeling problems, overviewing past pains, selling the solution, and addressing concerns—all through a question-based approach to ensure scalability and simplicity. Hermosi also stresses the significance of recording calls for compliance and improvement, maintaining communication through daily, weekly, and monthly check-ins, and incentivizing sales teams through competition and recognition. He advocates for regularly cutting the bottom 10% of performers to boost overall productivity and using leaderboards and rewards to foster a competitive, high-performance environment.

• The podcast focuses on acquiring customers, maximizing customer value, and retention in the gym industry.
• It includes discussions on failures and lessons learned in the industry.
• Listeners are encouraged to enjoy and subscribe for insights.

"Welcome to the gym Secrets podcast, where we talk about how to get more customers, how to make more per customer, and to keep them longer, and the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe."

This quote sets the stage for the podcast's content, emphasizing customer acquisition, value maximization, and retention as well as learning from past mistakes.

• Alex Hermosi is part of the leadership at Gym Launch.
• Gym Launch achieved significant financial success, reaching $50 million in revenue in 20 months.
• Alex is positioned as an authority figure in the gym industry.

"Next up, we have Alex Hermosi, the other half of the dynamic duo at gym launch. They went from zero to 50 million in 20 months."

The quote introduces Alex Hermosi and highlights the rapid financial growth of Gym Launch, establishing his credibility as a speaker.

• Alex gauges the audience's excitement for sales.
• He identifies the composition of the audience based on their involvement in sales.
• Alex prepares the audience for a fast-paced talk.

"All right, who's pumped about sales? Sort of pumped about. Okay, so quick question so I can cater this to you guys as I try and tell my team sometimes I'm going to talk fast. You can just listen fast."

Alex's quote engages the audience and sets expectations for the pace of his talk, emphasizing an interactive approach.

• Alex introduces the "Closer Framework" as the topic of his talk.
• The framework is divided into two parts: managing the conversation and managing the sales team.
• The aim is to achieve consistent sales performance.

"Okay, so the name of my lovely talk is going to be the closer framework."

This quote introduces the central topic of Alex's talk, the "Closer Framework," which is a method for improving sales processes.

• Alex discusses common issues with sales teams, such as inconsistent lead quality and cost of customer acquisition (CAC).
• He relates to the audience by acknowledging these widespread challenges.
• Alex's experience in managing B2B sales teams and providing outsourced sales services is highlighted.

"Who here has ever struggled with inconsistent lead quality? Inconsistent CAC, right? You're like, I thought I was at 1000 and now I'm at 3000. My leads are shit, actually. My leads are amazing. My sales team is underworked now they're overworked."

The quote addresses common problems faced by sales teams, such as fluctuating lead quality and acquisition costs, which can impact the efficiency and workload of sales personnel.

• The first of the five C's in the Closer Framework is to clarify why a customer is engaging with the sales team.
• The framework should consist only of questions to keep the conversation flowing and scalable.
• Questions help in understanding the customer's reasons for the call, their goals, and the importance of these goals.

"So the first one governs the conversation. So that's kind of for everyone who was raised. There's kind of more of you over here. We're raising your hands about, I've got one person or it's me. This is the governing framework for how you make the conversation. C is you clarify why the person is there."

The quote details the first C of the Closer Framework, which is about clarifying the customer's purpose for the interaction, establishing the foundation for the sales conversation.## Identification of Customer Problem

• Begin sales conversations by identifying customer's specific issues.
• Label the problem clearly to establish the need for a solution.
• Use confirmation to ensure the customer acknowledges the problem.

"So what I'm hearing is you've done X, Y and Z and the missing link has been x, whatever, is that right? Yes. Got it. I now have a problem."

This quote demonstrates the process of confirming the customer's problem, ensuring that both the salesperson and the customer are on the same page regarding the issue at hand.

• Discuss the customer's previous attempts to solve their problem.
• Identify why past solutions did not work, leveraging the fact that they are currently seeking a new solution.
• Introduce the concept of the "pain cycle" to delve into the customer's history of unresolved issues.

"So I'm assuming not the first person you've come to to try and solve this problem. So what have you done in the past?"

This quote is about exploring the customer's past experiences and establishing a context for their current need, which is critical for understanding their pain points.

• After discussing past pain, summarize the key points of the customer's struggles.
• The recap helps to solidify the customer's need for a solution.

"You do that until they have nothing left and you're like awesome. And then you recap the pain."

This quote highlights the importance of summarizing the customer's pain points to reinforce the need for a solution, which sets the stage for presenting the product or service as a remedy.

• Present the solution in a way that addresses the customer's core issues.
• Use illustrative stories to demonstrate how the product or service will solve their problem.
• Focus on three key aspects that the solution will improve for the customer.

"There's going to be three stories that you're going to tell them. They're going to be illustrative of the thing that you are helping them solve."

The quote emphasizes the use of storytelling to make the benefits of the solution tangible and relatable to the customer's situation.

• Address customer objections and concerns directly.
• Use specific strategies to overcome common sales obstacles such as price, stalling, and the need for approval from a decision-maker.
• Drill the responses to these objections so they can be presented confidently and effectively.

"Crazy people buy without obstacles. Normal people have concerns. You need to overcome them. These have to be drilled."

This quote acknowledges that overcoming objections is a normal part of the sales process and stresses the importance of preparation in handling these concerns effectively.

• Understand that price objections often stem from a perceived discrepancy in value.
• Ensure the customer appreciates the value of the product or service to justify the cost.

"If it's price, it's a discrepancy in value. They don't understand the value."

This quote identifies price objection as a value perception issue, suggesting that the salesperson needs to better communicate the value to the customer.

• When a customer needs to consult with a decision-maker, reinforce the urgency and necessity of the solution.
• Use implied past agreements to help the customer justify the decision to the decision-maker.

"If it's decision maker, what you have to do is rely on past agreements that are implied that that person has already communicated to the partner."

This quote advises on how to navigate situations where the customer is not the sole decision-maker, using the customer's history to build a case for the product or service.## Podcast Accessibility Options

• The podcast offers a video version with additional effects, visuals, and graphs.
• The video content may engage different cognitive processes and aid in understanding.
• The video version is available on a YouTube channel and is free of charge.
• Listeners have the option to continue enjoying the audio-only format if preferred.

"Video version of this, which usually has more effects, more visuals, more graphs, drawn out stuff, sometimes it can help hit the brain centers in different ways."

This quote emphasizes the benefits of the video version of the podcast, suggesting that it might engage the brain differently and potentially enhance learning or retention.

"You can check out my YouTube channel. It's absolutely free."

The speaker is directing listeners to their YouTube channel for the video version, highlighting that it is accessible at no cost.

• The Closer Framework is a sales technique designed to guide potential customers through the decision-making process.
• It involves teaching people to make decisions, addressing their fear of making mistakes.
• The process includes asking simple yes-or-no questions about liking the salesperson, the product, the potential outcome, and financial capacity.
• The framework also involves confronting the customer's main concerns and overcoming objections.
• Reinforcement of the decision post-sale is crucial to prevent customer withdrawal.
• Reinforcement strategies include personalized videos from the founder, handwritten cards, and gifts like t-shirts.
• The Closer Framework is one of the "five C's" related to managing a sales team.

"All you're doing is teaching someone to make a decision because people don't like making them because they fear making mistake."

This quote highlights the psychological aspect of the Closer Framework, which is to alleviate the fear of making a wrong decision by simplifying the process.

"Overcome. You make them confront the decision. All right, what's your main concern? Then they tell you the main concern. You overcome it. Close."

Here, the speaker describes the steps of overcoming objections and closing the sale, which are critical components of the Closer Framework.

"Reinforce the decision. And I like doing this. And we included it after time is that people back out."

This quote explains the importance of reinforcing the customer's decision to prevent them from second-guessing and backing out of the purchase.

• Recording sales calls is essential for compliance and improving sales team accountability.
• Call recordings help ensure adherence to the sales script.
• The recommended tool for recording sales calls, especially via Zoom, is Gong.
• Gong is highly praised by the speaker for its effectiveness in the sales process.

"If you're not recording every single fucking call that your people are on, one, you're not compliant. Two, you should do it, because then they become more accountable to following the script."

The speaker stresses the necessity of call recordings for legal compliance and to ensure that salespeople follow the prescribed script, which in turn can lead to more successful sales outcomes.

"You also overview those. The tool that you need to use is gong. If you guys sell via Zoom, the fucking best."

This quote is an endorsement of Gong as the ideal tool for recording sales calls, particularly those conducted over Zoom.## Communication Cadence

• Regular communication with the team is crucial for maintaining sales momentum.
• Daily huddles should be used to share testimonials to motivate the team.
• Weekly one-on-ones are for reviewing calls and discussing sales techniques.
• Monthly reviews are implied to be part of the communication strategy.
• During one-on-ones, sales representatives are expected to present their best, worst, and average calls for evaluation.
• The focus in these evaluations is on clarifying the problem, outlining the pain, asking for the sale, and overcoming objections.

"The cadence there is daily huddles, weekly one on ones. And when you do the. And then, obviously, monthly but the daily huddles are quick."

This quote emphasizes the importance of a structured communication schedule with different types of meetings.

"When you go over in the 100 and ones, you're going to ask them to show you where they clarified the problem, where they outlined the pain, and then where they asked for the sale, and where they overcame objections."

This quote details the specific areas of focus during the weekly one-on-one meetings, highlighting the critical elements of the sales process.

• Cutting the bottom 10% of the sales team regularly is crucial.
• Regularly removing the lowest performers is seen as the number one driver of sales team productivity.
• This practice is believed to result in a 30% jump in productivity each time it is done.

"It's the number one thing that will drive sales teams is by cutting the bottom 10%, you do it on a regular basis."

This quote suggests that regularly removing underperformers is key to driving overall team performance.

"Even if the team is going, okay, when you cut the bottom, you'll see a 30% jump in productivity every time."

This quote provides a specific metric of expected improvement in productivity following the removal of the lowest-performing sales team members.

• Salespeople are inherently competitive, and this should be leveraged to drive performance.
• A visible leaderboard should be updated and checked daily to foster competition.
• Notifications for sales achievements help maintain momentum and activity.
• In-person teams can use a bell to signify sales, while remote teams can use digital notifications.
• Competitions with rewards, such as trips, are effective, with six-week contests being optimal.
• Team competitions encourage best practice sharing and a collaborative environment.
• The budget for competition prizes can be around 25% of one month's earnings per salesperson.

"So competition salespeople are competitive. You have to have a leaderboard that is published that they can see every single day, that they get notified when every other guy is making a sale."

This quote highlights the importance of daily visibility and updates on sales achievements to drive competition among salespeople.

"Competitions, we found that six weeks works best in terms of sending them on, like, closers go to Vegas or go to the Bahamas or whatever it is."

This quote suggests that six-week long competitions for sales teams are the most effective in motivating and improving performance.

• A closer framework should be utilized, focusing on asking questions rather than making statements.
• Sales calls should be recorded for review and improvement.
• Salespeople should be equipped with 30-second stories to engage clients.
• Adherence to the compensation cadence is crucial.
• It is important to cut the bottom percentage of performers regularly.
• Keeping the sales environment competitive ensures sustained engagement and performance.

"So to recap, have if you want really, really consistent sales, use a closer framework. Everything has to be questions. Do not have statements. Have 32nd stories. Record your calls. Make sure you're sticking to the comp cadence. Cut the bottom percentage and keep it competitive so they stay in it."

This quote summarizes the key strategies for maintaining consistent sales performance, including the structure of sales calls, the importance of storytelling, call recording, compensation strategies, performance management, and competition.