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Table of Contents
Tab Topics
01 – Introduction..................................................... 13
04 – Selection………………………………………… 141
05 – Orientation………………………………………. 201
06 – Training………………………………………….. 247
07 – Managing……………………………………….. 273
08 – Coaching………………………………………... 303
09 – Leading………………………………………….. 325
11 – FAQs…………………………………………….. 365
Table of Contents
Tab Topics 3
Detailed Topic List 5
Welcome 9
What’s New 10
Dealer Acknowledgements 11
Introduction
Executive Overview: About the Introduction 13
The Guidebook 14
Product Support Inside Sales Summary 15
The Sales Interview: Differences Between a PSSR and an ISR 17
Documents for Your Use Included under this Tab – Introduction 22
Getting Started
Executive Overview: About Getting Started 101
Guidelines for Assigning Inside Sales Accounts 102
Contact Management System 102
Dealership Interaction 107
Process Mapping 108
Process Map 109
Environmental and Policy Considerations 110
Equipment Requirements 112
Management Reports 113
Marketing Campaigns and Promotions 114
Promotion Packager 114
Selection
Executive Overview: About Selection 141
Key Principles of Salesperson Performance – Aptitude 142
The Nine-Step Model 143
Making the Decision: Hiring “ISR as Destination” or “ISR to PSSR” 145
Definition of Terms: Aptitudes, Behaviors and Competencies 146
Behaviors of the ISR as a Destination Position 147
Step 1: Advertising and Recruiting 153
Examples of Advertising Copy 158
Step 2: Résumé Screening 161
04-01: ISR Application Scoring Guidelines 163
Step 3: Phone Screening 165
04-02: ISR Telephone Interview Rating Sheet 166
Step 4: Face-to-Face Interviews 167
04-03: Selection Interview Questions: ISR as Destination 176
Step 5: Asse ssment 185
Step 6: Secondary Face-to-Face Interview 188
Step 7: Job Shadow 189
Step 8: Reference Check 190
Sample Questions 192
Selection Checklist 197
Documents for Your Use under this Tab – Selection 198
04-04 Job Description 199
Resource Key – Selection 200
Orientation
Executive Overview: About Orientation 201
Orienting the Dealership: Understanding Current Paradigm 202
Building Relationships – ISR and PSSR 205
Operational Differences between Field Sales (PSSR) and ISR 214
Operational Differences between Counterperson and ISR 216
Operational Differences between Telemarketing and ISR 218
Internal Communication 220
Orientation Schedules 222
Training
Executive Overview: About Training 247
Key Principles of Salesperson Performance – Skill Level 250
Types of Training 251
Structured Courseware 252
Additional Courseware 252
Community of Practice 253
Training Checklist 254
Documents for Your Use under this Tab – Training 255
06-01: Building Customer Relationships Over the Phone 256
06-02: Shadowing Observation Form 259
06-03: First Year Training Plan 261
06-04: High-Impact Telephone Sales – Intermediate Course 263
06-05: Leading High-Impact Sales 267
Resource Key – Training 272
Managing
Executive Overview: Managing 273
Key Principles of Sales person Performance – Role Perceptions 274
Inside Sales Financial Measurements 276
Inside Sales Performance Measurements 278
Inside Sales Leading Indicators of Success 278
Performance Management 282
ISR Sales Execution 282
Customer Acquisition 283
ISR Sales Tasks 284
Customer Retention and Support 285
Coaching
Executive Overview: About Coaching 303
Key Principles of Salesperson Performance – Role Perceptions, Skill Level and Motivation
304
Level
Coaching Process 306
Coaching Technique 309
Coaching Course 309
Coaching Checklist 310
Documents for Use under this Tab – Coaching 311
08-01: Shadowing Form for Telephone Sales 312
08-02 Skills Database 313
08-03: Business Development Plan 321
Resource Key – Coaching 323
Leading
About Leading 325
Key Principles of Salesperson Performance – Motivation Level 326
Sales Culture 327
Leading Checklist 332
The Documents Under This Tab 333
09-01: Sales Meeting Plan 1: Reference Stories 334
09-02: Sales Meeting Plan 2: Compelling Reason to Call 336
09-03: Sales Meeting Plan 3: Customers 338
09-04: Sales Meeting Plan 4: Customer Bingo 340
09-05: Sales Meeting Plan 5: Solutions 342
09-06: Sales Meeting Plan 6: The Objections Game 345
09-07: Motivational Profile 352
Resource Key – Leading 355
Adding ISRs
Executive Overview: About Adding ISRs 357
Welcome!
Caterpillar Dealers throughout the world have successfully adopted the Inside Sales
Representative model to provide deeper and broader coverage for parts and services.
As the initiative has grown, the financial benefits of the program have been established
by Dealers in a wide variety of markets. This guidebook is intended to share “best
practices” which will allow you to benefit from the experience of others who have
pursued this sales platform.
A grass roots effort, the ISR initiative began as an individual initiative championed by a
few Dealers. Recently, the effort has grown exponentially as Dealers across the
Caterpillar network have adopted the platform.
This is the third revision to the guidebook. Since the last revision, Dealers have targeted
specific market initiatives – calling on TA1 visual walk-around inspection report forms
generated by Customer Support Agreements, for example. Samples of these new
initiatives are included in this revision of the guidebook. Dealers have also deployed
ISRs to call power systems-specific customers so the guidebook is published in two
editions – “power systems” and “machine.”
Each page contains a section in which you can jot down notes or highlight information
you wish to reference. We have arranged the guidebook in chronological order from
establishing a business case and getting started to adding additional ISRs.
Our goal at Caterpillar is to help you succeed. To that end, we dedicate this guidebook
to the Dealer men and women who pioneered this effort. We thank them for their
generosity and their willingness to share what worked for them, as well as those things
that perhaps did not go as planned. As a business community, we are all richer for their
assistance, experience, and guidance.
Erech Virden
Sales Effectiveness
Marketing and Product Support Division
MPSD
December 2008
What’s New?!
Since the last edition of the Guidebook in 2006, the ISR initiative has expanded across the
globe. Here is a sample of w hat’s new inside:
Case Studies – You’ll find an expanded list of Dealer Case Studies to help you
create your business case. See the ISR Business Case tab.
Com pensation – Are you w ondering what other Dealers are doing w ith respect to
compensation? Check the Dealer discussion under the Managing tab.
Exam ples – Follow the development of the ISR initiative w ith the business plan,
marketing plan, and ISR expansion plan of “Sample Caterpillar.” You’ll find this
information behind the ISR Business Case, Managing, and Adding ISRs tabs.
ISR or Not? – Answ er the question of w hether your ISR initiative is follow ing the ISR
model presented in this Guide by completing the “ Inside Sales Representative ( ISR)
Checklist” behind the ISR Business Case tab.
Marketing Plans – Want help creating a marketing plan for the year? See the
marketing plan and compelling reasons to call under the Getting Started tab.
Questions? – If you have a question, it’s likely someone else has pondered the
same thing. Glance behind the FAQs tab for answ ers to frequently asked questions.
Selection – Since the last edition of the Guidebook, MPSD Sales Effectiveness
released the Product Support Inter view and Selection Guide. The selection
information in the Implementation Guidebook is updated w ith this new research.
Look behind the Selection tab for more information.
What Do Other Dealers Sell Using ISRs? – See the discussion behind the Adding
ISRs tab.
John Dieseth
Business Performance Group
December 2008
Dealer Acknowledgements
MPSD is grateful to all of the Dealers and Dealer personnel who have contributed to this
Guidebook.
Manager Dealer
Bill Buss Finning Canada
Jim Durrett Whayne Supply
Yannick Montagano Hewitt
Tom Chiles Thompson Tractor
Joe Yonce Whayne Supply
Cathy Martin Patten Tractor
Dennis Kelly Patten Tractor
Bill Nealis Atlantic Tractor
Ray Bramlage Martin Tractor
Mike Lazzara Michigan Cat
Tania Tams Finning U.K.
Nabel Nassim Mantrac Egypt
Sven Krarup Finning S.A. (Chile)
ISR Dealer
Ken Pongo Finning
Chris Huot Finning
Kevin McMurry Whayne Supply
Jimmy Smallwood Thompson Tractor
TABS
Introduction
The Introduction introduces you to the contents of the Guidebook and how to use it.
Getting Started
Getting Started presents information on kicking off an ISR initiative at your Dealership, including
common metrics for the ISR position.
Selection
Selection provides proven methods for hiring the correct ISR candidate from posting and
advertising to interview questions.
Orientation
Orientation includes information on structuring the first tw o employment months of a new ISR.
Training
Training includes information on training new and existing ISRs, including information on
Caterpillar ’s courseware for ISRs.
Managing
The tab on Managing provides information on managing the ISR function w ithin your
Dealership.
Coaching
Coaching contains information on coaching an ISR to improve performance.
Leading
Leading includes information on developing, structuring, and supporting a high-performance
sales culture.
Adding ISRs
Adding ISRs includes information on grow ing your ISR staff.
FAQs
Under the FAQs tab, you’ll find answ ers to frequently asked questions.
Executive Overview:
NOTES
About the Introduction
This section of the Product Support Inside Sales
Implementation Guidebook (“the Guidebook”) is designed
to familiarize you w ith the contents of the book and the role
of the Inside Sales Representative or ISR. The materials,
resources, and information contained in the Guidebook are
explained in the introduction.
NOTES
The Guidebook
This third release of the Guidebook is designed to provide
a roadmap for the implementation and grow th of an ISR
strategy.
Executive Overview
Background
Checklist
Documents
Resources
Why Relationships?
NOTES
Instructions: The ISR position w ithin the Caterpillar Dealer netw ork is a prescribed sales role
and meets a defined set of criteria. Consider the telephone sales position you are evaluating
and answ er each question below to determine w hether this position meets the ISR profile.
# Yes No Question
Customer Relationship
4 Does the salesperson make calls to build the relationship with the
customer?
5 Does the salesperson, after a few months in the position, receive inbound
calls from customers asking for help, advice, or to place an order?
Management
7 Does the salesperson establish a planned annual rate of call (PAR) with
customers from guidelines established by the Dealer?
10 Does the salesperson generate leads for other salespeople within the
Dealership?
Yes No
Totals Page One
# Yes No Question
Salesperson Activities
The Salesperson
16 Does the Dealership carefully select these salespeople and are selling
skills a criterion?
Yes No
Totals Page Tw o
Yes No
Totals of Pages One and Tw o
17 or 3 or
more less Meets the ISR definition
YES NO
16 or 4 or
less more Probably does not meet the ISR definition
YES NO
Coverage Studies
Each Dealer’s effort to develop more efficient and effective
product support sales coverage has driven the creation of
a coverage study methodology to support parts grow th
initiatives, including the ISR. A coverage study is done in
conjunction w ith Caterpillar resources with the follow ing
typical results:
Metrics and
Measurements
The documents in this tab contain standard metrics and
measurements for ISRs to assist you in the preparation of
your business case. The Managing tab also includes an
in-depth discussion of establishing unique measurements
for your organization and your ISR.
Case Marketing
Study Dealer Location Organization
Some of the case studies w ere presented at these Dealer Exchanges as noted.
NOTES
Case Study 1: Finning Canada
Edmonton, Alberta, Canada
Bill Buss, Sales Manager
This Dealer began the ISR initiative in 2001 and had 4,000
original accounts to qualify. The criterion of under $30,000
in parts and service revenue and 1 to 6 Caterpillar
machines w as established.
Thompson:
• 15,205 machines
• 4,678 ow ners
• 3 machines or less ow ners – 75% of this total
• 2,235 ow ners – spending less than $3,000 annually
with Thompson
NOTES
Tom: No, but Jimmy has some customers that do both.
Customers didn’t really see the faults before. They saw the
form, but not w hat it said. Now they see us as providing
better support.
Training –
Used engine
Thompson rebuild
I have a customer I helped find lug nuts for a fire truck and
now they love us – small deal, but built a great reputation
with the customer.
Jimmy: Make sure your ISR knows your business and w hat
you offer. An early w in: Iw as in the job 1½ months and I
sold my first undercarriage (D3).
NOTES
Sales of non-Cat items – Komatsu Parts
Compensation:
Projects:
• NEXUS GET
• Rental store experiment
• Sales blitz reinforced
On-going training
Recognizing accomplishments
Weekly reports –
• Call activity
• Deals w on/lost
• Issues
• Sales leads
Results –
Database cleanup – 1,972 customers dow n to
1,578 (out of business, etc.)
2005 - $2,022,000
2007 - $3,017,000 (up 49%)
Satisfied customers
Looking forward:
• Rental division needs product support for CCE
customers
• Engine division – ISR to service pow er system
accounts
• Qualify accts for CCE equipment
• Identify leads for machine sales
• Follow up on CSA/PM inspections
• Follow up on top parts and service customers each
month
• Product support surveys
NOTES
The new team w ill be quality call not volume call approach
and w ill be focused in building relationships for product
support.
Separation of accounts
Other
A form has been created w hich helps the ISR w ork w ith
Parts Counters more effectively.
Structure
Inside Sales
£400,000
£350,000
£300,000
£250,000
£200,000
£150,000
£100,000
£50,000
£-
2003 2004 2005 2006 2007
Parts Service
PSSR Input
Relationships
Recruitment
Training
This role is a developmental role and team will work with manager on a training program
which will help them move into chosen next role after 18 months.
Business Planning
3500
3000
2500
Acc ounts Spending
2000 Average Spend per custom er
Estimated Growth by Ac count Spend
1500
1000
500
0
2003 2004 2005 2006 2007 2008 2009 2010
Costs
Call Outline
1. ISR contacts prospect or customer as Finning Product Support Rep – No direct sell.
3. If it is parts or service, ISR progresses sale w ith assistance from parts counters for
quotes, delivery, etc.
4. CSA contracts w ill be priced and quoted by the ISR directly w ith the customer.
General Construction
Contact Strategy – July 2008 – Dec 2008
Heavy Construction
Contact Strategy – July 2008 – Dec 2008
Thurs, Friday:
ISR team is in the 5th w eek of training – Go-live 14th July 2008
1 x ISR has completed full SEP training other 3 ISRs are at 40%
67 calls to prospects
12 accounts were deleted from database as not in the
business
17 Hot Opportunities (9 x Machine, 6 x Parts and
Service, 2 x Hew den)
18 of the activities required literature, quotes, and call
backs next w eek
2 new account forms w ere sent out from Finance to the
customer
“Together w e will provide unrivalled customer service; offering know ledge, honesty, ow nership
and consultative advice to our customers in order to benefit their productivity, efficiency and
bottom line. Through a professional attitude and w ork ethic, w e will grow revenue in parts and
service by helping the customer to grow with us.”
Agenda
Customers
Call Requirements
Number of
Number of
Customers Above Calls
Customers
Breakeven
Heavy Construction 389 93 372
Industrial Marine/Petrolumn 519 144 576
Mining - Quarry - Industrial 850 204 816
1758 441 1764
Number of Inside
Sales People 1
Needed
Getting Started
ISR CV
Education:
Bachelor degree in mechanical engineering, Alexandria Univ.
Mechanical Pow er Engineering Dept.
Year of Graduation: 2005
Com puter Skills:
AutoCAD – 2D & 3D
Microsoft Office XP (Word, Excel, Pow erPoint)
Skills:
Building relationships w ith others
Negotiation skills
Fundamental selling skills
Good planning abilities
Ability to w ork independently and as a team player
Objectives:
High interest in achieving amazing results
Looking for challenging position w ithin the group
Learning everything that could help to do a better job
Contacting Customers:
Qualifying Phase:
Performance Metrics
$145,000.00
$115,000.00
$85,000.00 32 Sales 2008
$55,000.00
% FCST
$25,000.00
-$5,000.00
Undercarriage Undercarriage
PSSRs Engine
ISR Engine
Preventative Preventative
Maintenance Maintenance
General Usage General Usage
Undercarriage 7% Undercarriage 2%
Engine 47% Engine 43%
Ground Engaging T ools 2% Ground Engaging T ools 1%
Drive T rain and Steering 7% Drive T rain and Steering 8%
Hydraulic 7% Hydraulic 7%
Preventative Maintenance 15% Preventative Maintenance 19%
General Usage 13% General Usage 19%
Parts Not Else Where Classified 3% Parts Not Else Where Classified 1%
Benefits
ISR concept is a cost-effective coverage
model for small business customers
Increase parts and service revenue for
small customers
Increase DCAL from 6% to 21% - reduce
competition for small business customers
Improve coverage
Save PSSR time to focus more on medium,
large, and fleet customers
Challenges
Invalid customer contact data
Managing customer relation w ithout
personal contact
Get a good read on the customer
Selling dealership added value
Customer buying criteria
Changing customers’ thoughts tow ards the
dealership – “We are too small to do
business w ith the dealer.”
Next Step
FinningSouth America
end of 2006
Machinery Ltd
From the Inside Sales
Representative (ISR) Conference
* April 8 – 9, 2008
Shanghai, China
Wu Ben
LSHM, Customer Service Division Manager
- For our ISRs, only the HEX customer is called, not the
stand-by generators – 895 all HEX customers
- Calls: NOTES
Self introduction
Confir m customer information
Learn about the customer
Customer machine annual SMU
Customer maintenance habits
Machine status –
o Problems engine
o Problems hydraulic
- Challenges:
ISR training
o Technical and product know ledge
o Selling skills
o Time management
Internal communication
- Future plans
Incentive programs
Li Kun
ECI-M, Parts Marketing Manager
Training
Management process
Attitude/discipline
Branch interference
Cyril Po
CEL, Parts Marketing Manager
Skills required
o Communication on the phone
o Ability to speak in an organized w ay
o Ability to listen
Problem-solving abilities
o What issues can be solved by an ISR?
As impressive as these case studies are, in creating your business case you w ill need to w ork to
your ow n numbers and your ow n business situation.
The next page contains an ISR Business Case Worksheet w ith line item explanations on the
follow ing page. Feel free to customize the w orksheet for your Dealership.
The calculation on the w orksheet does not figure in machine leads that result in sales. Many
Dealers have found lead generation is an added bonus w hen adding ISRs.
Immediately follow ing the line item explanations for the w orksheet is ISR Identified Critical
Success Factors. These are factors ISRs have identified as important as they learned the roles
and responsibilities of the job.
Revenue
Expenses
14 Total Costs
01 These are the accounts from the PTOS study that could be assigned to an ISR.
Typically, these are accounts w ith 1 to 6 Caterpillar machines that are not being serviced
sufficiently by a PSSR.
02 During pre-qualification by the ISR, about 30% of the accounts fall out of the territory due
to the business type (recreational or hobby) or business conditions (out of business,
retired, etc.).
07 ISRs w ill sell a blend of products and service with varying margins. A good proxy for this
calculation is the current margin mix in this customer segment.
09 You can pull this figure from the ISR’s compensation plan.
Dislikes:
- No personal (face-to-face) contact
- Difficult to get a good read on the customer
Likes:
- Can call someone several times in a day if
necessary
- Satisfaction of getting to a deal
- Inbound calls
- You can make more calls/more contacts than face-
to-face
Deter mine the number of accounts that could be assigned to an ISR. (Because
approximately 30% of accounts attrite during the pre-qualification process, a
good number to begin w ith is 1,000 accounts)
ISR NOTES
Quantitative Measurements
Average talk time Total talk time in a Indicator of call quality May not be
month divided by meaningful in a new
completed dials territory
Growth in territory vs. Compares the sales Allows comparison of May be influenced by
growth in branch growth in the ISR’s ISR against general “starburst ” sale or
overall accounts against the trends in the territory; negative outcome in a
overall growth in sales good way to calculate few accounts
at the branch the gain from the ISR
sales pressure
Sales in territory Product Support sales Pure and traditional For a start-up
in dollars generated measurement of position, does not
by the accounts salesperson value take into account
assigned to the ISR legacy, “would have
happened anyway”
sales
Sales per machine in Divide total product Reflects machine Does not take into
territory support sales by the population growth or account the type of
number of machines shrinkage machine mix
in territory
Under 10 43.9%
11 to 25 19.3%
26 to 50 9.8%
51 to 150 12.2%
>150 14.9%
1 to 2 20.6%
3 to 5 34.1%
6 to 9 23.3%
> 10 14.8%
Don’t Know 7.2%
Voluntary 21.8%
Involuntary 20.1%
Telephone sales are grow ing quickly. In the United States, 44% of business-to-business
companies use telephone sales to generate customer orders betw een $300 and $999. Most
Dealers report the initial orders from ISR customers are w ithin this range.
Marketing campaigns are used to generate sales. Telephone sales centers often use a blend of
direct mail and telephone contact.
Companies reported the optimal mix of media for a business-to-business marketing campaign
as:
The marketing campaign section of this guide recommends using direct mail in conjunction w ith
the sales group in this manner.
The average number of people involved in a buying decision is 3.19 people. The average sales
cycle for a blended product/service offering is 98 days.
Brand Identity
Companies targeting small customers (like many ISR customers) typically build their brand
around quality and service.
Companies targeting larger customers (like many PSSR customers) typically build their brand
around the uniqueness of their offering.
Lead Qualification
Leads represent prospects who have expressed interest in a product or servic e and w ho meet
qualifying criteria set by the selling organization.
Source:
Resource Key
The District/Area Caterpillar office can provide consulting and support services to assist
you in the creation of a business plan for the ISR position.
Marketing Planning
PTOS
The District/Area Caterpillar office can provide more information on the application of
PTOS.
Coverage Studies
The District/Area Caterpillar office can provide more information on doing a coverage
study for your Dealership.
To help you create and implement your ISR business plan, this Product Support Inside
Sales Representative Guideb ook contains a business plan, marketing plan and ISR
expansion plan from a fictitious Dealer called “Sample Caterpillar.” Although “Sample
Caterpillar” is for your reference only, all of the business cases are based on real Dealer
experiences and results, and are designed to help you create your own plan, specific to
your Dealership.
On the next page you will find the “Sample Caterpillar ISR Business Plan.” In this
example, the business plan was created by Dave Costello, Sales Manager to support
the development of an ISR initiative.
Sample Caterpillar
ISR Business Plan
Mission
To build a soundly profitable and grow ing revenue stream from small customers (1 to 6
Caterpillar machines) w hich:
o Retains these customers over the long-term
o Promotes additional machine sales through effective relationships
o Increases Sample Caterpillar’s market share w ithin this segment
To reposition Sample Caterpillar in the minds of customers as serving all customer
segments, not just large or fleet customers
Vision
To profitably become the proven leader in the s mall customer market segment
To create a career path for Dealer sales personnel
Values
To provide customer support of equal perceived value to the s mall customer segment as
is provided to the large customer segment
Recommendation
Add 1 ISR position next quarter
Add 3 additional ISRs w hen the business case has been proven w ith the first ISR
Executive Overview
Today Sample Caterpillar has 4,622 customers classified as small (1 to 6 Caterpillar machines).
Although assigned to PSSRs, these accounts are rarely visited by the PSSRs in the field
because of their small revenue potential. Product support is almost alw ays reactive and
customer-initiated – usually w hen a problem occurs.
Business Case
This left 4,622 customers w ithin this segment that can be assigned to ISRs.
Undercarriage Engine G.E.T. Drive Train Hydraulics General Usage Other Total
Sales $112,140 $514,034 $183,046 $84,647 $258,785 $268,317 $275,135 $1,696,105
ISRAccounts Opp $1,447,165 $2,049,534 $766,609 $1,153,055 $1,796,214 $872,436 $623,498 $8,708,511
DCAL % 8% 25% 24% 7% 14% 31% 44% 19%
From our coverage study, I recommend assigning approximately 1,200 accounts to each ISR
initially. Other Dealers report up to 30% of these accounts w ill be disqualified for continued
coverage due to:
No longer in business
Recreational or hobby machine/engine users
Equipment w as sold
1,200 beginning accounts – 360 disqualified = 840 final accounts per ISR.
Dealer experience is $300 to $1,000 of incremental revenue per account per year. I
benchmarked our Dealership w ith other Dealers, and deter mined $500 per account is a
reasonable expectation for Sample. For the purposes of this business case, how ever, I’ll use the
minimum figure.
840 accounts x $300 incremental revenue/account = $252,000. I’ll use $250,000 in the
calculation as minimum revenue:
Only 1 ISR is deployed; additional ISRs w ill reduce the office, sales management, and
direct support burdens per ISR
I expect the position w ill generate $400,000 in product support revenue per year (about the
middle of Caterpillar Dealer experience) and 3 machine/engine leads. At this time, I w ill not
include revenue from the machine/engine leads because those sales w ill be completed and
closed by other salespeople. Again, as a beginning business case, I’ll assume only one ISR and
therefore a higher burden of office, sales management, and direct support costs.
I have added into the model a commission for the ISR of 5% of any revenue over the minimum
$250,000 incremental.
Ancillary benefits:
At Sample Caterpillar, the ISR position w ill be a developmental position for other sales
roles (machine, pow er systems, rental, etc.). Therefore, the position w ill reduce the costs
of recruitment and training in other sales positions as w ell as generate profit.
We can expect, at a minimum, 3 machine/engine leads per year that w ill close,
enhancing the profitability of the ISR position.
Incremental revenue
o 1,200 accounts w ill be randomly selected for the first ISR. Incremental revenue
will be deter mined based upon the same quarter for these accounts the previous
year.
o The remainder of the accounts w ill serve as benchmark against these accounts
to measure incremental revenue. This w ill eliminate any general economic
trends. I propose reporting both numbers. The ISR w ill be paid on the calculated
incremental revenue.
Phone time
o Phone time is a good measurement of how relationships are being built based on
the length of each conversation. I w ould like to see 80 minutes of conversation
per day.
Leads generated
o Leads generated by the ISR w ill be tracked. The ISR w ill be paid a $100 referral
fee for each lead that closes. We w ill track all leads for reporting purposes.
Developmental Position
At Sample Caterpillar, the average age of all employees is 47 years. In the near future, much of
the senior sales staff will be able to retire. ISRs can provide a source of talent for other sales
positions. The advantages of structuring the ISR position as a developmental role include:
Because the ISR position is resident w ithin the Dealership, the behaviors and
performance of ISRs are directly observable and measurable over time. If field
salespeople are selected from this group, the selection process w ill be greatly enhanced.
Field salespeople are relying more and more on the telephone to communicate w ith
customers. Over half of this sales group’s contacts with customers are now over the
phone. ISRs w ho move into field positions w ill be extremely comfortable w ith the
telephone and how to use it effectively.
ISRs w ill learn about our products, parts, and service w hile in the ISR role – they w ill be
“field ready” for other sales positions.
ISRs w ill learn how to tap resources fromw ithin the Dealership. Their location in the
Dealership w ill facilitate this know ledge.
ISRs w ill learn how to communicate w ith and problem solve for customers.
Because the ISR is profitable shortly after hire, training time is effectively covered by
activity, unlike the long, unproductive training period of a new field salesperson w ho is
unfamiliar w ith selling or the Dealership and our products, parts, and service.
Getting Started
Executive Overview:
About Getting Started NOTES
Once you’ve made the decision to move forw ard w ith the
ISR initiative (or to add additional ISRs), you have choices
to make regarding the assignment of accounts, the contact
management system, the contact rate, coverage
management, and how to handle account assignments
betw een ISRs and PSSRs. This section of the Guidebook
is designed to help you w ith these choices.
Contact Management
System
Once pre-qualified, the typical ISR w ill have a territory of
600 to 1,000 accounts and w ill generate 400 or more dials
each month. Consideration needs to be given to the
software application that ISRs w ill use to access on-line
customer data, document customer call activity, track
follow -up activities, and provide access to relevant Dealer
support information. In addition, the Customer Relationship
Management solution (CRM) must support the
sustainability of information and team communication
relative to customer selling efforts.
No one CRM solution w ill fit all situations. Here are some
key considerations w hen selecting a CRM:
Co nnie
McDougall, CRM Orig inally pur chased fr om Toromont in
Finning (Canada) NAC D CANAM Solutions w ww.can amsolu tionsinc.com
Pr ocess Owner 780-483-37 55 cmcd ougall@fin ning.ca 2004, now serviced by Cana m.
Halt on NAC D Saleslink Ch ris Harbeso n charb eson@halto nco.com All PSSRs are on the system.
B lanchard NAC D SalesLin k Art C at oe 803-791-71 00 catoe@b lanchardmachinery.co m Just st ar ting t o use Sales Link
C arolina Cat NAC D SalesLin k Pat Duncan 336-218-50 04 pdu ncan @car olinacat.co m
C arter NAC D SalesLin k Lee Sutp hin 804-730-18 10 lee_su tphin @cartermachinery.com
Greg Poole NAC D Goldmin e w ww.gold mine.com Damon Magee 919-890-43 30 magee@gregpoole.com
Walker NAC D Microsoft C RM Kevin B ar nhouse 304-949-64 00 kbarnhou se@w alker-cat .com
M acAllister NAC D Laurie Winther, We deployed SalesLin k to HE salesmen an d
M achinery Co ., Indian ap olis http :/ /canamsolutio nsi Sales CR M PSSR' sJanu ar y of 20 07. On deck to d eplo y v2 in
Inc. District SalesLin k nc.com Man ager 317-860-33 33 lau riew inther @macallister.co m the next 60 days.
Implemented Sales Link 2 years ago and are
B ree Ru therford , also actively using To romont' siQuote and
Co rporate Inventory mo dule s… we u se fo r camp aign
w ww.can amsolu tionsin Mar keting management and tracking, lost sales rep ortin g
Giles & R ansome NAC D SalesLin k c.com Administrato r 215-639-43 00 bruth erford@ranso me.com and call reports.
Ch uck West or Ch uck: 432 -5 71-
Warren Cat NAC D SalesLink Sandy Fo x 435 3 ch uck.west@war rencat.com
B arlow orld EAM E mySAP CRM w ww.sap.co m Francisco Carillo fcar illo@b arlow orld .fin anzauto .es
Microsoft Access-
based customized 217-529-55 41
Alto rfer NAC D CR M systerm Jim Allen ext 17 0 jallen@altorfer.com
Dealership Interaction
Process Map
Personnel policies:
- Modify work hours based on the work
schedule of the customer base the ISR is
assigned (early morning or evening w orking
hours w here needed).
- Work and training schedule – Consider four
days a week on the phone with a fif th day
for training. (03-12).
- Establish backup procedures to cover
vacations and training time by designating
one or more resources to cover inbound
customer calls for the ISR.
Centralization
Synergies are gained through a centralized group. The group operates as one team. These
are relatively new people to the company and a group environment allow s them to share
ideas, challenges, and successes with one another.
Centralization promotes continuity in the calls and the call format, w hich means customers,
as w ell as the rest of the organization, all get the same message.
Inside Sales is a new role for the Dealership. Keeping ISRs at one location w ill provide
control over the job, training, development, tracking of the activities and results of the
group.
Centralization discourages dilution of the position. If decentralized, other duties may creep
into the position and take aw ay the emphasis of w hat has to be accomplished.
Mentoring and coaching activities are easier w hen the ISRs are centrally located.
Efficiencies of scale of telephony equipment and support infrastructure are realized via
centralization, something that is difficult and expensive to duplicate at individual branches.
Decentralization
Makes the branches accountable for the success of the individual ISR’s results.
Increases the chance the ISR and customer w ill meet face-to-face at the branch.
ISR and customer are more likely to have commonalities (know the same people, follow the
same sports teams, recognize the same highw ays, understand local projects).
NOTES
Equipment Requirements
The proper equipment infrastructure is critical to the
productivity and management of the ISR position.
NOTES
Management Reports
In order to support the success measurements detailed in
the previous tab, it is recommended the follow ing reports
are review ed at least monthly:
NOTES
https://catcampaigncentral.com
Promotion # 1:
Promotion # 2:
Promotion # 3:
A - Customer Narrative
B - Customer Service
PIP/PSP notices
PM TA1 visual w alk-around inspection reports
S•O•S reports
Recent service in the shop
Warranty expiration
C - Specials or Promotions
Call Opening
Question 2
Question…
Question 1
Call Close
ISR calls are not scripted, they are open dialogue. This means the conversation takes w hatever
path the customer and the ISR w ant it to take. As the graphic above shows, without any
guidelines or direction, the conversation can w ander based on w hat the customer w ants to
discuss. But, if the ISR prepares a call outline before making the call – a document containing a
call objective, call opening, questions, and a close – the path of the call is structured.
If ISRs do not use an outline, it is likely they w ill spend considerable time on the call thinking
about what they will ask or say next rather than listening to the customer. To build a
relationship, an ISR needs to listen. A call outline provides the ISR w ith a structure for the call
which makes listening much easier.
Do calls using a call outline alw ays go as planned? Of course not. A customer may raise an
issue, an opportunity for the customer’s business may appear, or a customer service situation
may surface. It is not alw ays possible to follow the call outline on every call, but using the outline
whenever possible allow s the ISR to maintain control and increases his/her chances for
completing a successful call.
Do ISRs need to read the outline w ord for word? No. Telephone conversations should be
conversational. ISRs should use the outlines as guides, not as scripts, and should construct the
outlines using their ow n language.
Call Outline
Document 03-01
Verify – You have the correct contact. – “Are you the person at < company > w ho makes
the decisions regarding parts and service for your equipment?”
Open-Ended Questions:
To ensure I provide you with relevant information, could I take a few minutes to review the
equipment list I have for your organization?
Closed-Ended Questions:
Occasionally, our Dealership has specials on parts or service. Would you like to be contacted
about these promotions?
If I see a new product or service that may be beneficial for your business, would you like me to
contact you?
Typical Next Steps: Set the customer up for follow-up calls at PAR. Customer expects and
desires the follow-up calls. [Two more calls are in this series.]
Close:
To thank you for being our customer and taking my call today, I’d like to send you a free Cat
cap. I’ll give you a call if we have a special or promotion of interest to your business, or if I spot
something new that may be beneficial. In the meantime, please feel free to call if I can be of
service.
Call Outline
Document 03-02
Smile!
Compelling Reason to Call – “You asked me to give you a call if w e had a special or
promotion that might help your business. You may have received our postcard in the mail; w e’re
offering a free oil sample this month w ith the purchase of fluids, filters, oils, or coolants. Can I
ask you a few questions to see if this special might be a fit for your business?”
Open-Ended Questions:
Tell me about your preventive maintenance programs. [Oil sampling can help determine the
right oil change intervals based on usage and site conditions.]
Describe to me how you dispose of your machines/engines. [Oil sample reports are very
valuable to prove maintenance history to a used machine/engine buyer.]
Closed-Ended Questions:
Typical Next Steps: Set the customer up for follow-up calls at PAR. Customer expects and
desires the follow-up calls. [One more call is in this series.]
Close:
May I place your order for maintenance supplies and set up your free oil sample?
Call Outline
Document 03-03
Smile!
Compelling Reason to Call – “You asked me to give you a call if w e had a special or
promotion that might help your business. You may have received our postcard in the mail; w e’re
offering a free set of work gloves with the purchase of batteries, belts, or hoses. Can I ask you a
few questions to see if this promotion might be a fit for your business?”
Open-Ended Questions:
Tell me about how you select a vendor for your consumable products. (i.e. batteries, belts,
hoses)
Closed-Ended Questions:
Typical Next Steps: Set the customer up for follow-up calls at PAR. Customer expects and
desires the follow-up calls.
Close:
May I place your order for __________ and send you your free work gloves?
Many customers are interested in learning more about the maintenance and operation of their
equipment. Dealers offer Cat Care Meetings to educate customers, and to provide an
opportunity for the sales group to meet w ith their customers in a relaxed, informal setting.
Engine ISRs can filter their customer bases to include only those customers w here the offerings
at the Cat Care meetings are relevant.
In order to make this economical and controllable, the Dealership should set a minimum and
maximum number of customers required to hold the event. These quotas should be passed
along to the sales group.
If you have multiple ISRs, consider holding a sales contest to rew ard the ISR w ho gets his/her
quota filled first.
Allow ample time for calling. Starting six or seven w eeks in advance of the Cat Care date is
preferable. Often customers have tight schedules, so the more time you leave for planning the
better.
Call Outline
Document 03-04
Smile!
Offer: Cat Care Meeting – learn about maintenance and operation. Refreshments
served.
Compelling Reason to Call – “You asked me to give you a call if w e had a special or
promotion that might help your business. <Your Dealership> w ill be hosting a Cat Care Meeting
on ___________ at our main branch in ___________. I’d like to invite you to come in, learn
valuable maintenance and operating tips, and have refreshments. There’s no obligation to you
of course, except to have fun. Is this something you might be interested in?”
Open-Ended Questions:
If you could wave your magic wand, what demonstrations would you like to see?
Closed-Ended Questions:
Typical Next Steps: Meet the customer at the Cat Care Meeting.
Close:
Seasonal specials are popular because seasonal changes trigger specific needs that customers
can easily relate to – like antifreeze in colder climates. If anti-freeze is not appropriate to your
area, substitute another product w hich applies locally. The goal is to find something w ith a
seasonal trigger.
“You asked me to give you a call if w e had a special or promotion that might help your
business. We’re offering a 10% discount on orders of antifreeze over 50-gallons (liters)
to help our customers get ready for w inter. Can I ask you a few questions to see if this
promotion might be a fit for your business?”
If you have another promotion that is more appropriate for your Dealership, change the offer.
As ISRs establish relationships w ith their customers, the compelling reason to call w ill grow
more informal and become more conversational.
Call Outline
Document 03-05
Smile!
Compelling Reason to Call – “You asked me to give you a call if w e had a special or
promotion that might help your business. We’re offering a 10% discount on orders of antifreeze
over 50-gallons (liters) to help our customers get ready for w inter. Can I ask you a few questions
to see if this promotion might be a fit for your business?”
Open-Ended Questions:
Explain your inventory policy on antifreeze. <Follow-up> Would now be a good time to stock up
for the season?
Closed-Ended Questions:
Typical Next Steps: Set the customer up for follow-up calls at PAR. Customer expects and
desires the follow-up calls.
Close:
Or
Based on our conversation, I’d recommend you purchase ______ gallons (liters) of antifreeze
which would entitle you to our 10% discount. May I place that order for you?
ISRs have been successful selling Customer Support Agreements (CSAs) and renew ing CSAs
in a variety of power systems and machine situations. Many ISR machine customers are Do-It-
Myself (DIM) customers. DIM customers typically are less receptive to CSAs because they
perform their ow n maintenance. Some small customers, how ever, are very receptive because
they have only a few machines or pow er system installations, or the machine or pow er system
is incidental to their core business. For example, on the machine side, a utility or small local
government may be receptive to a CSA. On the pow er systems side, a hospital or an oil
company w ith a remote installation may find a CSA attractive.
Most ow ners must have a relationship before purchasing a CSA. A CSA implies trust betw een
the Dealer and the customer. Outsourcing maintenance and repair requires a comfort level on
the part of the customer – an understanding he/she has a “go to” person w hen needed.
When you construct your ISR CSA initiative, care must be taken to develop business in
geographic areas w hich can be served economically by the Dealership. Because ISRs use a
telephone, they are not tied geographically. ISRs must be careful to acquire new CSAs in
locations w hich are sufficiently concentrated to afford the Dealer economies of scale.
Call Outline
Document 03-06
Smile!
Compelling Reason to Call – “”You asked me to give you a call if w e had a special or
promotion w hich might help your business. Right now , our Dealership is creating new territories
for our preventive maintenance technicians. Because volume makes us more efficient, w e can
pass along the savings to customers w ho sign up w ithin the next 30 days. Can I ask you a few
questions to see if this might be a fit for your business?”
[Your conversation should be based on your previous knowledge of the customer’s equipment
and maintenance]
Open-Ended Questions:
Tell me about the preventative maintenance practices you’ve put in place.[Good preventive
maintenance (PM) practices are more than just changing fluids and filters; good PM includes
inspections and the steps in the PM checklist.]
Tell me how downtime affects your business. [Unscheduled downtime can be very costly. Good
PM reduces unplanned and unscheduled downtime.]
Closed-Ended Questions:
Would you like a way to reduce your total ownership costs? [Good preventive maintenance
programs reduce the total cost of ownership.]
Typical Next Steps: Send a Customer Support Agreement for the customer’s review and
signature. Set up a telephone conversation to review.
Close:
Great! I’ll get that mailed <emailed> to you today. I’d like to set up a time to review the
agreement and ans wer any questions you may have. Would <time> next <day of week> work
for you?
For many Dealers, it is important to stress the sale of maintenance supplies. In this promotion, a
special is offered for the purchase of multiple maintenance items.
Call Outline
Document 03-07
Smile!
Compelling Reason to Call – “You asked me to give you a call if w e had a special or
promotion w hich might help your business. This month, w e are having a special on maintenance
supplies like Cat Oil, filters and grease. Can I ask you a few questions to see if this might be a fit
for your business?”
[Before placing the call, research the customer’s equipment, years of service, past purchases,
etc.]
Open-Ended Questions:
Closed-Ended Questions:
Close:
Call Outline
Document 03-08
Smile!
Compelling Reason to Call – “You asked me to give you a call if I had anything new that
could impact your equipment. I noticed a Product Improvement Program notice, or PIP, that
affects one of your ___________. If you have a minute, I’d like to discuss this w ith you.”
Open-Ended Questions:
Closed-Ended Questions:
Is this unit due for any routine maintenance at this time? (PM1, PM2, PM3, or PM4)
Typical Next Steps: Arrange for field service or for the customer to bring the unit into the shop.
Close:
I’ll have the service dispatcher give you a call; you should hear from him within 24 hours. He’ll
work with you to make arrangements to accomplish the PIP improvement.
Call Outline
Document 03-09
Smile!
Compelling Reason to Call – “You asked me to give you a call if I found anything new
regarding your equipment. Yesterday I received an S•O•S report on your engine. S• O•S reports
can highlight potential problems in advance and help avoid unplanned dow ntime. I’d like to
review the findings w ith you if you have a few moments.”
[Note: this is an example only, must be customized for the specific situation]
Open-Ended Questions:
Closed-Ended Questions:
Did your mechanic check the magnetic plugs during this PM?
Close:
Call Outline
Document 03-10
Smile!
Clarify – “Hi, this is ___________; I’m your account representative at <your Dealership>.
We talked earlier and I updated and verified your equipment list.”
Compelling Reason to Call – “You have a CSA agreement on your engine. Yesterday
our PM Technician completed a PM4 Maintenance Interval Schedule and a TA1 Visual Walk-
Around Inspection on the equipment. He provided me a copy of the report, and if you have a
few moments, I’d like to point out a few findings.”
Open-Ended Questions:
Closed-Ended Questions:
Close:
I’d recommend scheduling field service to correct this situation. Can I get your engine on the
schedule?
Call Outline
Document 03-11
Smile!
Clarify – “Hi, this is ___________; I’m your account representative at <your Dealership>.
Compelling Reason to Call – “You ow n a ________ and I w as noticing the w arranty will
be expiring soon. We offer an extended w arranty program, and I’d like to ask you a few
questions to see if this is something you should look into.”
Open-Ended Questions:
Describe to me your equipment replacement plan. How long do you intend to own this piece of
equipment?
Closed-Ended Questions:
Do you have financing on this equipment? [Many financing packages are longer than the
manufacturer’s warranty.]
Are planned and known operating costs important for you to manage your business?
Close:
I’d recommend you purchase the extended warranty. May I place that order for you?
Aptitude
Salesperson Performance
Skill Level
During his or her career, the ISR w ill change status from
NOTES
“suspect” during the recruiting phase, to “mentor,”
graduating each step as experience and know ledge is
gained. The Dealer’s activity w ill mirror the salesperson’s
grow th, transitioning from “recruiting” to “leveraging.”
Selection
NOTES
Executive Overview:
About Selection
Selecting the right employee for the ISR position is critically
important. Role perceptions can be defined; skills can be
raised; know ledge can be imparted; but aptitudes – those
native personality traits a person brings to the job – cannot be
changed. Aptitudes must be selected.
Role Perceptions
Aptitude
Salesperson Performance
Skill Level
The job of ISR requires behaviors and tasks that prescribe some of these required traits. For
example:
The job is repetitive. The ISR w ill be required to pick up the NOTES
phone 20 to 30 times per day, each and every day. Has the
candidate ever had a repetitive job? Has he/she
demonstrated the ability to be successful in a position that
requires repetitive w ork, or w ill different stimulation be
required every day?
Within this tab, you w ill find tw o selection models based on the career path you choose for your
ISR. One model is used if the ISR position is the destination position w ithout a pre-determined
“next job.” The other model is used if the career path is to a PSSR position or other field sales
position w ithin one or tw o years. Each model branches into a nine-step selection process based
upon the career path you choose. The face-to-face interview questions (04-03) are based on an
ISR transitioning to a field sales position. You can easily modify the questions based on the
model provided if you are hiring a destination position ISR.
The Guidebook contains explanatory material to help you deter mine the proper career path for
your ISRs and to execute the nine-step model for selection.
Some considerations:
Behavior 2: Lead Qualification – Through a combination of solid product know ledge and
effective questioning, recognizes opportunities and acts on them
Behavior 3: Closing Sales – Possesses a smooth delivery that leads up to a clear request for
the customer to purchase Dealer products/services; smoothly transitions to a request for further
contact
Behavior 4: Consultative Selling – Uses know ledge of Caterpillar Dealer solutions (product
support, service, machine sales, financial services, etc.) to fit the customer’s business needs
Behavior 5: Customer Relationships – Effectively builds relationships w ith the customer that
facilitate closing the sale
A. Consistently w orks to build teamw ork and coordination betw een self and internal Dealer
departments
B. Understands w ho can assist w ith specific problems and builds effective relationships
with those resources
C. Regularly interacts w ith other ISRs to share ideas and techniques
D. Understands the dynamics of the Dealership and how to effectively get things done in
that environment
Behavior 7: Customer Support Services and After-Sale Services – Provides superior service
and responsiveness in follow ing up after the sale and also resolving customer concerns
Behavior 2: Face-to-Face Sales Call – Through persistence and persuasion, identifies and gains
access to key decision makers w ithin the customer’s organization
Behavior 3: Lead Qualification – Through a combination of solid product know ledge and
effective questioning, recognizes opportunities and acts on them
Behavior 4: Account Planning – Works w ith sales manager to establish plans to grow customer
business
A. Works w ith managers to develop individual customer sales plans to achieve Dealer
business plan
B. Makes regular on-site contact w ith customers to implement customer sales strategies
C. Understands customer critical success factors to more accurately define and deliver
value
D. Per iodically discusses key accounts with various Dealer departments to ensure
consistent sales strategy and focused message to the customer
E. Works to impact customer’s business by counseling the customer regarding
maintenance and operating practices to help the customer become more competitive
Behavior 5: Closing Sales – Possesses a smooth delivery that leads up to a clear request for
the customer to purchase Dealer products/services; smoothly transitions to a request for further
contact
Behavior 6: Consultative Selling – Uses know ledge of Caterpillar Dealer solutions (product
support, service, machine sales, financial services, etc.) to fit the customer’s business needs
Behavior 7: Customer Relationships – Effectively builds relationships w ith the customer that
facilitate closing the sale
D. Illustrates through w ords and actions that the Dealer is a w ell-coordinated team that
provides pow erful support for the customer
E. Adapts communication style to the various backgrounds and styles of audience (e.g.,
proprietor/ow ner, machine operators, etc.)
F. Maintains composure w hen faced with difficult customers
G. Follows up w ith customers after initial sale to ensure customer satisfaction
H. Develops relationships w ith administrative staff of customer organization to gain access
to key decision makers and influencers
I. Understands purchasing process and budget cycles
J. Regularly gains access to centers of influence
K. Initiates presentations to influencers (e.g., production managers, purchasing agents,
customer service managers, etc.) to gain buy-in from all affected parties
L. Structures time effectively while remaining flexible enough to respond to customer
emergencies and other unforeseen contingencies
A. Consistently w orks to build teamw ork and coordination betw een self and internal Dealer
departments
B. Understands w ho can assist w ith specific problems and builds effective relationships
with those resources
C. Regularly interacts w ith other ISRs to share ideas and techniques
D. Understands the dynamics of the Dealership and how to effectively get things done in
that environment
Behavior 9: Customer Support Services and After-Sale Services – Provides superior service
and responsiveness in follow ing up after the sale and also resolving customer concerns
Step 1:
Advertising and Recruiting
Keep in mind, how ever, that the decision to hire from w ithin
the Dealership is very similar to the external selection
decision. You want to match the best person with the job.
Sometimes, even w hen there is a strong desire on an
employee’s part to take on a new challenge, the match is
just not right. Each case must be considered individually.
Em ployee Referrals
Em ployment Agencies
Customers' Em ployees
Instructors
Trade Associations
NOTES
Your industry's trade association may provide a referral
service or job bank that you can access. Many trade
associations have publications w ith an employ ment
section. Even calling your association's executive director
and letting him or her know of your search can provide
excellent referrals. You may also attend your association's
annual or regional meetings and encounter likely
candidates through the nor mal netw orking process.
Newspaper Ads
The Internet
Ads on the Internet can produce even more applicants than new spaper ads. Moreover, you
advertise nationally, although you may have to consider paying moving expenses and related
costs. Not only can you place your ad on the Internet, but you can also access resumes easily
and quickly w hile remaining anony mous. Many job sites, such as Monster®, have resume
search tools that allow you to quickly identify those resumes containing relevant terms, such as
“inside sales.” Using these tools can greatly reduce the time spent in prescreening applicants.
If new spaper ads are used, they must run in the right
space at the right time to be read by the most promising
people. They must be properly w orded to attract the right
people. Here are some pointers:
Nobody has yet come up w ith the perfect ad that alw ays
gets the maximum number of qualified recruits. You might
want to study other ads to pick out the style and w ording
you think w ould attract the kind of person you want. Make
a scrapbook of the ads that appealed to you. Keep your
ow n ads as w ell, recording the number of responses you
received and the hiring results. Repeat the good ones.
Change the w ording in those that don't w ork as well. Style
is difficult to dictate, but here are some pointers for the
functional portion of the ad:
Copy Suggestions
NOTES
Here are some statements you might consider including in
the ad w hen advertising for an ISR. A few more w ords will
increase the cost of the ad, but the right words might be
that extra nudge that convinces the right person to answer
the ad.
Leads furnished
Will train
Expense allowance
NOTES
Step 2:
Resume Screening
After you have used the resume grading tool (04-01) and
have considered the positive signs and red flags, you can
divide the resumes into three groups – definite candidates,
maybes, and knockouts:
Definite Candidates
The Maybes
The Knockouts
Document 04-01
Applicant: _______________________________
Technical Sales
Description Skills Skills
Experience
2. Sales experience:
Technical Sales
Skills Skills
7. Education:
5 = College degree
4 = Junior college degree
3 = Some college
2 = High school degree
1 = No degree
8. Job responsibilities:
5 = Superior candidate
4 = Great candidate
3 = Good candidate
2 = Fair candidate
1 = Poor candidate
TOTALS
GRAND TOTAL
Step 3:
Phone Screening
The telephone interview rating sheet (04-02) can be used for both
the “ISR to PSSR” and the “ ISR as a Destination” positions. The
tool incorporates behaviors determined to be important for
success at either ISR position.
In addition to using the interview rating sheet, you may w is h to consider some other sample
questions:
Among the previous jobs you listed on your resume, in w hich one did you have the
most success? Why?
Among your previous jobs, w hich did you like the best? The least? Why?
What w as the most monotonous, dull, or boring part of any job you ever had? Why?
What w as the most interesting or stimulating part of any job you ever had?
Document 04-02
ISR Telepho ne Interv iew Rating Form
Instructions:
1. T hank the candidate for his/her interest in the position.
2. T ell the candidate to ask you about the position and then "sell" you on inviting him/her to a face-to-face interview.
3. Ask the candidate about any "red flags" on his/her resume.
T otals:
Step 4:
Face-to-Face Interviews
Once you have narrowed the field dow n, you are ready to
thoroughly evaluate each candidate’s strengths and
limitations. This process starts w ith a face-to-face
interview . After the interview , the candidates you are
serious about should be given a valid personality
assessment to learn about aptitudes and innate talents,
glean insights into their motivations, and discover new
areas to explore in the next interview . Once the personality
assessments have been review ed, you should be focused
on only a few strong candidates.
How ever, there are ways that we can all become more
effective at asking probing questions. Many resources are NOTES
available to the manager or personnel specialist on
interview ing, including college courses, short seminars,
videos, and books.
C. Communicate agenda
NOTES
Describe the purpose of the interview .
Reinforcement
Silence
Control
Summ arization
Example:
DO
Prepare carefully
Follow a plan
Put the applicant at ease
Hold telephone calls – do not face a computer
monitor or review a handheld
Ask open-ended questions like “Tell me about …”
Wait for answ ers
Let the applicant talk most of the time
Avoid personal bias
Hold the more difficult questions until applicant is
relaxed
Listen carefully for what the applicant means
Look interested, receptive, and sympathetic
Follow up carefully whenever “red flags” appear
Get precise information
Avoid arguments
Compliment favorable information
Avoid any appearance of an inquisition
Keep control of the interview
Base conclusions on fact, not opinions
Encourage applicant to keep talking w ith comments
like, “Uh-huh” or “Then w hat happened?”
259
DON'T NOTES
Allow interruptions
Do most of the talking
Oversell the position
Ask leading questions that make it obvious w hat
answ er you desire
Avoid tough questions to protect feelings
Offer personal comments on the information
Accept generalities – get the precise facts
Over empathize w ith the applicant's past
Let personal bias affect judgment or comments
Belittle the applicant's record
Make moral judgments
Help w ith the answers except to encourage them
Raise the applicant's hopes w ith promises or
comments
Let the applicant pressure you into a decision
Use trick questions that under mine your credibility
Act superior
Let the applicant take over
Let manneris ms distract you from the real purpose
Jump to conclusions
Document 04-03
ISR
Face-to-Face Interview Summary Rater Form
Candidate: Face-to-Face
Interview Date:
Interviewer: Secondary
Interview Date:
Desired behavior: Presents ideas and opinions in a constructive logical way and gathers all relevant
information about customer’s needs.
a) Describe a time when you needed to present an idea or opinion in order to influence
another person. Were you successful? Why or why not?
b) Describe a time when you were systematic in developing a sales strategy. What were the
steps? How did you influence the customer to follow these steps? What was the outcome?
c) Think of a time when you’ve coached someone on a skill or knowledge. Tell me how you
did it. Did their behavior change? Why or why not?
e) How would you respond to a customer that said it is difficult to deal with us because our
Dealership is too big?
1 2 3 4 5
Notes:
Desired behavior: Effectively builds relationships with customers that facilitate closing sales and
juggles multiple customer accounts.
a) Think of a project or business endeavor that was successful because of the strong
relationships you built. How did you build and maintain the relationships?
b) Tell me about the best business relationship you have built. How did it begin? What makes
it special?
c) Tell me about a time when you’ve juggled multiple tasks and projects. What did you do?
How did it work?
Does not demonstrate the Has some ability to build Demonstrates ability to build,
ability to build relationships or to relationships and to leverage nurture, and leverage
translate relationships into sales these relationships in a relationships in a selling
opportunities. selling situation. situation.
1 2 3 4 5
Notes:
3 – Customer Focus
Desired behavior: Identifies, understands, and gives priority to satisfying the needs of internal and
external customers.
a) How would you respond if a project you were involved with failed because of someone else
inside the organization?
b) Building rapport is sometimes a very challenging thing to do. Describe a time when you
were able to build rapport with someone at work even when the situation was a difficult one.
c) If presented with a problem regarding order fulfillment, how would you start the process of
addressing the customer’s concerns?
d) What would you do if a customer received a service and the quality was questionable?
e) Tell me about a time when a customer asked about a product/service and you didn’t know
the answer. How did you get the answer?
Does not view meeting the Consistently acts with Interacts regularly with
expectations and requirements customers in mind and stakeholders to gain feedback
of customers as paramount for considers customer service of and to ascertain ways to
success. Will often put personal paramount importance to the improve service. Works to
or other priorities ahead of business. Builds and anticipate customers’ future
those of the customer. Does not maintains effective needs. Strategically plans ways
effectively work to understand relationships with customers to demonstrate superior
the needs of customers. and gains their trust and customer service.
respect.
1 2 3 4 5
Notes:
Desired behavior: Identifies the priorities, processe s, and practical actions that are necessary to
achieve an objective or idea.
a) Think of a time when you had to plan your work activities over an extended period of time
to accomplish a goal. What did you do? How did you document your plan?
b) Have you ever had a plan that needed to be adjusted due to events beyond your control?
What happened? What did you do?
c) Tell me about a time you had to plan with a manager. What did you do? What was the
result? How often did you plan?
d) Describe a time in your life where you had a goal with a time horizon of at least one month.
How did you accomplish the goal? What did you like/dislike about the experience?
Little demonstrated ability to Some ability to plan over Shows ability to plan over an
plan over extended periods of extended periods. Some extended period of time and
time. Rigid approach and style. adherence to planning over to adjust behavior to
Little flexibility. time. Reasonable flexibility to changing conditions.
change based on conditions. Demonstrates flexibility to
change.
1 2 3 4 5
Notes:
5 – Achievement Motivation
Desired behavior: Demonstrates the drive and determination to achieve ever-increasing levels of
performance.
b) Tell me about a time when you needed to be especially persistent in pursing a task. What
did you do?
d) Tell me about a project you worked on that required you to persist in overcoming a series
of obstacles.
e) How would you respond if the first five calls you made in a day did not result in sales
opportunities?
f) How would you handle a call with a customer who has used our services and is irate with
us? How would you get the relationship back on track?
g) How would you deal with a customer who just couldn’t make up his/her mind?
1 2 3 4 5
Notes:
6 – Communication
Desired behavior: Conveys ideas and information in a clear, direct, and unambiguous way.
a) Tell me about a time when your active listening skills on a telephone call paid off for you.
b) Tell me about a time when you had to present complex information over the phone. How
did you ensure that the other person understood without visual clues?
c) Describe a time when you were able to effectively communicate a difficult or unpleasant
idea to someone else over the phone.
d) We find what works with one person does not necessarily work with another; we must be
flexible in our style of relation to others. Give me an example of when you had to vary your
communication style with a particular individual.
Does not consider the needs of Conveys ideas in a clear, Effectively adjusts
audience when presenting unambiguous way. Exhibits communication style to meet
information. Fails to keep active listening skills. Verifies the needs of the audience.
stakeholders informed of information and Presents complex information in
pertinent information. Dictates understanding before drawing an easily understandable way.
rather than facilitates two-way conclusions. Ensures all pertinent
conversation. information is provided to
concerned parties.
1 2 3 4 5
Notes:
Step 5:
Assessment
Step 6:
Secondary Face-to-Face Interview
Step 7:
Job Shadow
Step 8:
Reference Check
A key question that should alw ays be asked (and one that
some interview ers save for last) is, “If you had to do it over
again, w ould you hire this person?” Note the enthusias m,
or lack thereof, in the answer. Keep in mind that some
companies have a rule against re-hiring people w ho have
left an organization. You w ill w ant to verify a company’s
policy on this matter if the answ er you receive is a simple
“no.”
Evaluating References
Information received by checking references falls into tw o
categories: factual and judgmental.
Step 9:
Offer
Rejection Letters
Officially notifying job candidates who participated in
secondary interviews that they did not get the job is an
extra step in the hiring process that few companies bother
to take, but it’s one that makes good business sense.
Onboarding
The follow ing four key points will help you get your newest
team members up to speed and “on board” so they can
start contributing to Dealer success as soon as possible.
NOTES
want to do great work and add great value to your
Dealership.
updated and alw ays accessible is the best practice w hen it NOTES
comes to information sharing.
Don’t make day one all about paperw ork. Instead, prioritize
interpersonal relationships w ith key colleagues. Consider
assigning w elcome mentors to each new hire so he or she
can immediately get a feel for the personality of your
organization. This day of first impressions w ill have an
enormous impact on the employee experience, so make it
a good one.
Selection Checklist
OR
Step 9: Offer
Onboarding
Document 04-04
Job Description
The goal of the Inside Sales Representative is to re-establish, qualify, and maintain contact with small to
medium-sized customers to increase sales of parts and service solutions. These are customers with 0 – 6
pieces of equipment. The goal is to “touch” these customers a minimum of 4 times per year via the
telephone. In addition, direct mail and other promotional campaigns will be utilized with assigned
accounts. Customers span all industry types (e.g., agriculture, heavy construction, compact construction,
forestry, power systems, etc.). Some customers do not have Caterpillar equipment, but they can still
benefit from Dealer services and offerings.
Role Summary
Account qualification and updating: The ISR will proactively manage an account base of up to 1000
accounts in an assigned territory using the telephone as his/her primary tool. Employing a disciplined
phone call campaign, ISRs will qualify accounts, update the customer’s complete account information,
and begin to develop the relationship.
Maintain call cycle: Taking into account the diversification of the customer base and that some
customers may require contact on either a weekly, monthly, or semi-annual basis, ISRs will strive to
maintain a minimum 120 calls per week, spending four days per week on the telephone and utilizing the
fifth day for personal training and development.
Maintain accurate account database: ISRs will maintain accurate customer account information and
machine population. This allows the targeting of specific customers for sales and promotions and the
tracking of specific account and territory goals.
Promote Dealership services: ISRs will promote all aspects of the Dealership by selling parts, service,
labor, Customer Support Agreements, and providing machine and engine sales leads.
Lead development: ISRs will develop and qualify equipment and/or parts and service leads and where
applicable, forward them to the Dealership’s outside sales organization.
Sales and customer satisfaction: Through the needs analysis process, ISRs will determine individual
customer’s needs and provide solutions to meet them.
Relationship building: The ISR is the single point of contact from the Dealer to the customer. The ISR’s
ability to develop a strong positive relationship with his/her customers and fellow employees
(PSSR/machine/engine sales reps) is critical to his/her success.
Personal development: Ongoing process encompassing goal setting and setting attainable monthly and
yearly objectives intended to reinforce continuous improvement and achievement toward company goals.
The ISR is expected to complete the Dealership’s ISR training program.
Resource Key
Interviewing
Caterpillar has w orked closely w ith Business Performance Group to develop all of the
training materials that exist for the ISR role (both CD- Rom and facilitator-led). Business
Performance Group can assist your organization w ith telephone interview s for ISR candidates.
Contact John Dieseth, jdieseth@BPGrp.com or Jennifer Geist, jgeist@BPGrp.com,
515.440.4722.
Profiling
Caterpillar has w orked closely with Caliper, Inc. to develop a screening tool that is
customized for the ISR role. Once a qualified candidate is identified, it is highly recommended
that the Caliper screening tool (or an equivalent) be administered. Contact Craig Putnal,
cputnal@calipercorp.com, 609.524.1378.
Orientation
NOTES
Executive Overview:
About Orientation
Orientation has tw o components – or ienting the Dealership
about the new ISR position and orienting the new ISR to
the Dealership.
Orientation Dealer-Facing
If your new ISR has Dealer experience, you may w ish to ask
him/her to complete the questionnaire found in the Document
section of this tab to assist in customizing the orientation
process.
Still others may feel that counter people can easily perform the
tasks of the ISR in their spare time.
NOTES
Interest Generation
Business Issues
Levels of Relationship
Call Structure
Closing
Building Relationships – ISR and PSSR
Sales
The
60% 40%
Business Issues
Customer
Opportunities
Problems
Strategies
Customers have business problems, opportunities, and strategies – w e w ill call these “business
issues.”
Opportunities are business situations that the customer can take advantage of to grow
profits and/or revenue, or to reduce expenses. An example of a customer opportunity is a
new project or job the company has been aw arded.
PSSRs and ISRs must be interested in all business issues – problems, opportunities, and
strategies. Counter people and telemarketers focus on problem solving.
NOTES
NOTES
Equipment Relationship
Price/Delivery
Purchase
Inquiry
Literature
Visit to the
Oil Lab
Quotation
Purchase
Call Opening
Question 2
Question…
Question 1
Call Close
Each call should set up the next call. To the customer, the
ISR/PSSR should alw ays be compelling – alw ays adding
value. For the ISR/PSSR, each call should serve to
advance a relationship or close a sale.
Key
√- Interest Generation
Interest Generation
Notes: Interest generation more challenging for the ISR. PSSR gets credit for physically
being at the customer’s location. ISR must capture and hold attention w hen the
customer may be distracted by visual images.
Business Issues
Levels of Relationship
Call Structure
Notes: Similar, but PSSR conversations tend to be less structured – more situational.
PSSR call can involve “show me” demonstrations and inspections.
Key
X - Interest Generation
√- Business Issues
X - Levels of Relationship
X- Call Structure
Interest Generation
Notes: The customer is already interested w hen he or she approaches the
Counterperson. The Counterperson is required to generate interest in cross-sell and up-
sell items, but in these instances the customer is already purchasing.
Business Issues
Levels of Relationship
Call Structure
Notes: The customer drives the call structure more than the Counterperson.
Key
X - Interest Generation
√- Business Issues
X - Levels of Relationship
X - Call Structure
Interest Generation
Notes: The ISR must generate interest in a relationship – an intangible concept. The
telemarketer can primar ily rely on the product or service to be interesting.
Business Issues
Notes: The telemarketer and ISR are interested in problem solving. The ISR is also
interested in the customer’s opportunities and strategies – these are not critical to the
telemarketer.
Levels of Relationship
Call Structure
Notes: Both the telemarketer and ISR set call objectives, but the ISR’s call is open-
dialogue and non-scripted. The telemarketer’s calls are narrow ly focused, scripted, and
rely on closed-ended questions.
Branch locations
Counter personnel
Service dispatchers, lead hands, and supervisors
PSSRs
Machine salespeople
Other service areas – hydraulics, undercarriage, etc.
Inbound receptionists
Marketing
Customer service
Role Perceptions
Aptitude
Salesperson Performance
Skill Level
Orientation Schedules
The goal of the orientation and training plan is for the ISR
to develop the required skills, know ledge, and disciplines
to be effective in the role as soon as possible. The ISR
should be encouraged to begin the process of contacting
customers w ithin the first 30 – 60 days in order to develop
telephone customer experience. Call recording and
subsequent evaluation should be instituted immediately
and repeated at least quarterly to ensure appropriate
coaching and call technique improvement.
The goal for this phase is to build know ledge of all parts
and service offerings of the Dealership and develop the
phone and consultative selling skills necessary to be
successful. In addition to using the w ide variety of courses
available from Caterpillar, training should also include
“hands-on” field experience in critical areas. It is also
recommended that ISRs dedicate one day a w eek to their
personal training and development.
12 Months – 24 Months
NOTES
This phase involves the use of the Sales Competency
Assessment and the Product Support Know ledge
Assessment in conjunction w ith an Individual Learning
Plan ( ILP). The ILP is the vehicle that builds a plan to fill
specific gaps that are identified in the assessment process.
Sample Questions
Call Outlines
Call Outline – Initial call to customers. Dealership has not sent an announcement
(Document 05-04)
This call outline is used to open a call w ith a new account w hen the Dealership has not sent an
announcement in advance of the call.
This call outline is used to open a call w ith a new account w hen the Dealership has sent an
announcement in advance of the call.
This call outline is used to contact customers to generate interest in Dealer preventive
maintenance services.
Notes
Orientation Checklist
New hire?
Use Document 05-02 New Hire ISR Orientation & Training – modify to fit your
Dealership
Use Document 05-01 New ISR – Dealer Experienced – customize the orientation to
cover gaps
Plan
Execute
Plan
Execute
Plan
Execute
05-01 New ISR Orientation (use w ith individuals promoted from w ithin the Dealership)
05-04 Call Outline: Initial Call to Customers. Dealership has not sent an announcement
05-05 Call Outline: Initial Call to Customers. Dealership has sent an announcement
This questionnaire is intended to be used with new ISRs that have experience within the Dealership .
Instructions : Please check the box that represents the most appropriate response.
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
Document
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
25-Day Plan/5 Weeks
Document 05-03
Call Outline
Document 05-04
Smile!
Verify – You have the correct contact. – “Are you the person at
< company > w ho makes the decisions regarding parts and service for your equipment?”
Open-Ended Questions:
To ensure I provide you with relevant information, could I take a few minutes to review the
equipment list I have for your organization?
Closed-Ended Questions:
Occasionally, our Dealership has specials on parts or service. Would you like to be contacted
about these promotions?
If I see a new product or service that may be beneficial for your business, would you like me to
contact you?
Typical Next Steps: Set the customer up for follow-up calls at PAR. Customer expects and
desires the follow-up calls.
Close:
I’ll give you a call back if we have a special or promotion of interest to your business, or if I spot
something new that may be beneficial. In the meantime, please feel free to call if I can be of
service.
Call Outline
Document 05-05
Smile!
Verify – You have the correct contact. – “Are you the person at
< company > w ho makes the decisions regarding parts and service for your equipment?”
Clarify – “My name is ___________, from < your Dealership>. You may have received
an announcement from our Dealership regarding my assignment to w ork w ith you.”
Open-Ended Questions:
To ensure I provide you with relevant information, could I take a few minutes to review the
equipment list I have for your organization?
Closed-Ended Questions:
Occasionally, our Dealership has specials on parts or service. Would you like to be contacted
about these promotions?
If I see a new product or service that may be beneficial for your business, would you like me to
contact you?
Typical Next Steps: Set the customer up for follow-up calls at PAR. Customer expects and
desires the follow-up calls.
Close:
I’ll give you a call back if we have a special or promotion of interest to your business, or if I spot
something new that may be beneficial. In the meantime, please feel free to call if I can be of
service.
Call Outline
Document 05-06
Smile!
Clarify – “Hi, this is ___________, I’m your account representative at <your Dealership>.
Ear lier w e talked and I updated and verified your equipment list. You asked me to give you a
call w ith products or services that may be a value to your business.”
Open-Ended Questions:
Tell me how you determine when to change the oil in your machines.
Closed-Ended Questions:
Would you like a way to get information about your equipment’s maintenance requirements?
Would you be interested in a service that might save you overall operating costs?
Close:
<literature > May I prepare literature on S•O•S for your review and get it off to you today?
Call Outline
Document 05-07
Situation:
___________________________________________________
Smile!
Verify
Clarify
Open-Ended Questions:
Closed-Ended Questions:
Close:
ISR: ________________________
How will my customers communicate w ith this department (through me, directly to the
department)?
What advice does this department have for me on how to work w ith them?
What advice does the department have for me on selling their products/services?
What makes this department stand out from the competition?
Next steps
Introductory Email
Document 05-09
This document is an email template to notify departments a new ISR w ill be contacting them.
Cc:
Please join me in w elcoming <name of new ISR> as an Inside Sales Representative or ISR.
<name of new ISR> w ill be w orking w ith 600 – 1,200 of our customers w ho own 1 to 6
Caterpillar machines. <He/she> w ill be building relationships and promoting product support
products, parts, and service to this important segment of our customers, as well as generating
leads for additional <machine/pow er systems> sales.
I have asked <name of new ISR> to contact you to learn about w hat work you perform for
customers and how <he/she> should communicate w ith you. I have also asked <name of new
ISR> to observe your operations.
Please tell <name of new ISR> how <he/she> can best work w ith your department to serve
customers. Also, please tell <name of new ISR> how your department differentiates yourself
from our competition.
Resource Key
Caterpillar has an audio program for the sales manager that discusses the orientation,
coaching, and training of a new ISR and includes conversations betw een an ISR and a sales
manager. This program is contained on 3 CDs and comes w ith a w orkbook. ( Media Number
PEBJ0006) Contact MPSD, Caterpillar.
Training
Executive Overview:
NOTES
About Training
There are a series of attributes a salesperson must bring to
a sales job in order to be successful. These attributes
were defined and addressed in the tab marked “Selection.”
What an individual learns in terms of sales skills and
product know ledge is also very important to his/her
success. The outbound telephone salesperson, or ISR, is
more reliant on specific sales skills than many other types
of salespeople. This is true because of the limitations of
the device he/she uses – the telephone.
Now , imagine a situation w here you are using only one ear
NOTES
to listen to a salesperson. Your mind w anders as there are
no Pow erPoints, no gestures, no props in view. You fix
your gaze on the ceiling because you cannot see the
salesperson and he cannot see you.
Role Perceptions
Aptitude
Salesperson Performance
Skill Le vel
Types of Training
This section addresses two types of training – learning
through structured courseware (either self-directed or
facilitator-led) and learning from observing other ISRs.
Observation
As was mentioned previously, an ISR can learn much
about the job by shadow ing other salespeople. Managers
are encouraged to provide structure to a shadow ing
exercise by asking the new ISR to document w hat he or
she learns. A form (06-02) for the ISR to use for this
purpose is included in the Document section of this tab.
Structured Courseware
Caterpillar has created tw o structured courses designed
specifically to meet the needs of the ISR and tw o courses for the
sales manager.
Additional Courseware
In addition to development activities, sales managers should
consider the follow ing courses to effectively manage the ISR
function. All courses are available through Caterpillar University
on CLMS:
Community of Practice
Caterpillar also provides the “Caterpillar ISR Message
Board,” an on-line meeting place and idea exchange for
ISRs. This secure on-line tool allows ISRs to exchange
ideas and best practices, ask questions, and provide
advice to ISRs across the Caterpillar Dealer family.
Because the ISR initiative is new , many ISRs w ork in one-
or tw o-person call centers. The “Caterpillar ISR Forum”
provides an opportunity for the community to learn from
one another.
Training Checklist
Design product know ledge curriculum based upon w hat the ISR w ill be selling for your
Dealership
If you have other ISRs, arrange for shadow ing time w ith them
At six months, register the ISR for the Caterpillar inter mediate program, High-Impact
Telephone Sales
06-01 Synopsis and Table of Contents for the self-directed training program, Building
Customer Relationships Over the Phone
06-04 Synopsis and Table of Contents for the facilitator-led, inter mediate level course
for ISRs, High-Impact Telephone Sales
06-05 Synopsis and Table of Contents for the facilitator-led, inter mediate level course
for sales managers, Leading High-Impact Sales
Document 06-01
Caterpillar’s Product Support Course for Inside Sales Representatives (ISRs) Building
Customer Relationships Over the Phone
Welcome to Caterpillar’s High- Impact Telephone Sales Course for Inside Sales Representatives
or ISRs. As an ISR, you have joined an impressive family of sales professionals at the
Dealership level. In this position, you are dedicated to serving our customers, supporting the
service and parts organizations at your Dealership, and providing outstanding product support.
As a telephone sales professional, you have a unique role at the Dealership to serve a critical
segment of our customers. Welcome aboard!
This course is designed to provide you w ith a foundation of know ledge and skill. Because selling
is an interactive people skill, the course is interactive. You will meet w ith your manager, see
other areas of the Dealership, and meet the experts at various points throughout the course.
You have this Participant Guide in w hich to fill in exercises, note information from your visits in
the field and at the Dealership, and to integrate other Caterpillar information on our products
and services.
There are eight CDs included in the course. Each disk contains the materials in a particular
module.
During this course we w ill introduce three Caterpillar customers and an ISR. You w ill have the
opportunity to hear role-play situations w ith these customers. In addition, each Caterpillar
customer w ill share his or her view point and help you see the Dealership and Caterpillar from
the eyes of the customer – the most important eyes of all!
The Participant Guide contains the exercises you will be completing and is intended to be a
resource book for you when you begin calling customers. There is a lot to learn about the
Dealership, about Caterpillar products and services, and about selling. Our goal is to help you
learn about all three in the context of how you will apply this information on the job.
Your manager has a Facilitator Guide w hich w ill enable the tw o of you to have structured
discussions about what you have learned. Your sales manager is a dedicated and
know ledgeable professional and w ill be an excellent resource to you as you grow in this
position.
Table of Contents
Building Customer Relationships Over the Phone Document 06-01
Getting Started 6
Module 1 Module 1 8
Module 2 Module 2 30
Module 3 Module 3 50
Module 4 Module 4 74
Module 5 Module 5 96
How do I know?
Customer facts:
Solution/Benefits:
How did the ISR open the call? What was compelling for the customer?
Parts Pro – This CBT course provides the basic knowledge required in the following
areas:
Parts and Parts Qualify – 9 specific courses are available on CD in the
following areas:
o Engine basics and parts
o Drive train
o Preventative maintenance and general usage products
o Undercarriage A
o Undercarriage B
o Hydraulics A
o Hydraulics B
o Ground Engaging Tools (GET)
o Remanufactured products
Counselor Sales Person (CSP) – This course provides an introduction to the skills
required for solution selling. It is available via e-learning or as a facilitator-led class.
Synopsis: This course is developed around the business cases of a Do-It- Myself customer and
a Work-With- Me customer. During the course, the participant is asked to listen to simulated
telephone conversations, diagnose customer needs, propose solutions, create a compelling
reason to call, and handle objections.
The course uses a learning instrument to identify the participant’s selling style (direct,
considerate, systematic or spirited) and provides tools and techniques to determine the style of
the buyer. Using information presented in the course, the ISR can then adapt his or her style to
the most effective approach for the buyer.
Participants also spend time learning how to overcome objections particular to telephone selling
(including brush-offs), how to generate interest over the phone, and how to properly use sales
collateral and proposals.
High-Impact
Telephone Sales
Intermediate Level
Table of Contents
Description Module
Table of Contents
Description Module
Risk 2-J
Timeline 2-K
Gatekeepers 2-M
Table of Contents
Description Module
Close 5-B
Synopsis: The two-day Leading High-Impact Sales course is designed to present the
fundamentals of telephone selling and to equip managers with the tools, skills, and
knowledge to deploy telephone sales within their Dealerships. Dealers worldwide have
proven the model.
Telephone sales is a unique selling platform. Over ⅓ of the human brain is dedicated to
processing visual images – something the telephone sales representative can’t take
advantage of. Communication experts say 75% of communication is body language,
15% is tone of voice, and 10% is word choice. The telephone sales representative can’t
use body language and tone of voice is limited by the telephony equipment. To make
matters worse, the telephone salesperson’s customer typically has only one ear in the
game!
Managing this function requires a different skill set than field sales management.
Leading
High-Impact Sales
Agenda – Day 1
Agenda – Day 2
Resource Key
Building Customer Relationships Over the Phone, an 8-disk self -directed audio program
that includes a 190 page Participant Guide ( Media number PECJ0031) is available from Sales
Effectiveness, Marketing and Product Support Division ( MPSD), Caterpillar.
Caterpillar ISR Forum, an on-line community of ISRs is available for the ISR and the
sales manager. Post questions, meet others w ho are working in the same capacity, and
participate in the exchange of know ledge and ideas. To obtain access, contact Jennifer Geist
jgeist@BPGrp.com or John Dieseth jdieseth@BPGrp.com at Business Performance Group,
515.440.4722
Sales Manager: Building Customer Relationships Over the Phone, a 3-disk audio
program and Facilitator Guide for sales managers of ISRs ( Media Number PEBJ0006) is
available from Sales Effectiveness, Marketing and Product Support Division ( MPSD),
Caterpillar. Use in conjunction w ith the ISR course, Building Customer Relationships Over the
Phone. Includes answ ers to the exercises found in the ISR’s course, as w ell as ideas and
examples for the sales manager.
Leading High-Impact Sales, a 2-day facilitator-led inter mediate level course is available
for ISR managers. To schedule, contact Erech Virden, Sr. Mar keting Consultant, in Caterpillar ’s
Sales Effectiveness Marketing Product Support Division ( MPSD) at virden_h_erech@cat.com or
309.494.5832
Managing
Role Perceptions
Aptitude
Salesperson Performance
Skill Level
Once the accounts have been qualified, a low er call rate NOTES
can be expected because of the improved call quality and
resultant increase in call duration. In addition, ISRs w ill
begin to receive inbound calls from their customers w ith
specific requests. Experience says that at this level of
activity, 20 calls per day is a reasonable number to expect.
Inside Sales
Performance Measurements
The success of the ISR function can be measured in the
same w ay as the outside PSSR sales role using the
follow ing metrics:
Inside Sales
Leading Indicators of Success
In addition to traditional performance measurements, a set
of “leading indicators” of inside sales success should be
established to drive targeted inside sales behaviors. ISR
leading indicators include:
Compensation Structure
The compensation structure for an ISR should be
established based upon the Dealer’s marketing strategy.
An ISR should be rew arded for his/her selling efforts,
increasing market share, and grow ing revenue and profits
in parts and service. A typical compensation structure
consists of a base salary plus commission and any
applicable Dealer gain sharing. The commission can be
based upon attaining and/or exceeding a specified sales
target for the assigned accounts or targets for parts and
service solutions. Additional commission should be
considered for:
Dealer 1
Base salary
Paid on percentage of parts and service sales
based on the size of the assigned territory
Dealer 2
Base salary
Commission based on percent of territory parts
and service target
Quarterly bonuses (based on specific customer
or product targets and Personal Performance
Commitments)
Equipment leads resulting in sales – splits
negotiated
Used equipment sales
Dealer 3
Base salary
Commissions based on monthly sales
objectives and monthly call objectives
Commissions paid on monthly attainment of
sales objectives and YTD attainment of call
objectives
Dealer 5
Dealer 6
Dealer 7
Dealer 8
Customer acquisition
Sales execution
Customer retention and support
Sales Execution
Once the relationship is established and the account has been qualified as able to do business
with the Dealership over time, the follow ing sales tasks are critical to the success of the ISR:
Relationship Building – The ISR must develop strong positive relationships with customers through
an understanding of the business situation and needs of each customer. In addition, the relationship
with fellow Dealer employees is critical to the ISR’s success.
Account Updating – The ISR will proactively manage an account base of up to 1,200 accounts in
an assigned territory using the telephone as his/her primary tool. The ISR will continually update the
customer’s account and machine population information as a deeper customer relationship is
developed. By maintaining accurate customer account information and machine population, special
sales and promotions can be targeted for specific customers.
Customer Satisfaction – Through questioning and the needs analysis process, ISRs will determine
the customer’s needs and specifically market to those needs.
Consistent Call Cycle – Taking into account the diverse customer base that the ISR is assigned
and that some customers may require contact on either a weekly, monthly, or semi-annual basis, an
ISR should strive to maintain 20 calls per day once all customers have been qualified.
Dealer Serv ices – ISRs will promote all aspects of the Dealer including selling parts, service, labor,
Customer Support Agreements, and providing equipment leads.
Lead Development – ISRs will develop and qualify equipment and/or parts and service leads and
where applicable, forward them to the appropriate sales team.
Solution Configuration – ISRs should utilize Service Information System (SIS) and the Dealer’s
parts system to offer options to customers. ISRs should rely on support from the service department
for Custom Track Service (CTS), Custom Hydraulic Service (CHS), Technical Analysis (TA1/TA2, or
other machine inspections.
Prov ide Information – ISRs will routinely e-mail, fax, or mail product literature and quotes to the
customer.
Solutions Quotations – ISRs should use DBS to price parts, check availability, and prepare
quotations for maintenance solutions for the customer. Quoting assistance from the service
department is provided when repair processes are complex or machine inspections are required.
What is the time strategy for the month (call days, training
days, in-territory days)?
Managing Checklist
Managing Checklist
Deter mine important activity metrics (see 02-02 and the appropriate sections in this tab
for guidance)
Discuss w ith ISR and w hen consensus is reached, both the ISR and sales
manager should initial; copy given to the ISR
Discuss w ith ISR and w hen consensus is reached, both the ISR and sales
manager should initial; copy given to the ISR
Compare actual activity metrics from the reporting system against the Personal Business
Plan on a regular basis
Name: XXXX
Date: XXXX
Department: XXXX
As an inside sales representative for < Dealer >, you are accountable for helping
organizations in your territory buy Caterpillar and < Dealer > products and services.
Your territory will consist of qualified and selected suspects, prospects, and customers
with approximately one to six machines. Your purpose is to reach your sales goal each
month. You will use the telephone to contact customers and to advance the sales
process.
Activity Expectations:
Action Plan:
Sales Process
1. Organization: Organize your w orkstation and w ork area effectively. Keep your data,
sales collateral, and aids organized and ready for use.
2. Attitude: Maintain a positive attitude tow ard the company and our products and
services. We help customers solve business problems and w e help them take
advantage of business opportunities.
3. Strategy: Create strategies for effectively managing and grow ing your territory. Include
tactics for customers, prospects, and suspects.
5. Reference Stories: Use reference stories to create visual images for buyers and to
provide proof our solution w ill meet their needs.
6. Allocate Your Time: Pursue a balanced approach to your territory. Execute on all of
your strategies.
7. Opening the Call: Use a good call opening and compelling reason to call.
8. Probe Effectively: Ask good questions to qualify functions as benefits and to create a
conversational presentation of your products and services.
9. Probe for Budget: Ask and pre-qualify the budget the buyer has to solve the business
issue.
10. Probe for Buying Comm ittee: Ask and pre-qualify the buying committee that w ill be
involved in influencing and recommending your solution.
11. Probe for Risk: Identifying and addressing risk is critical for the sale.
12. Probe for Needs: Ask about the company’s general needs beyond the specific features
of your product or service.
13. Probe for Timeline: Identify the buyer’s timeline for solving the business issue.
14. Call Conclusion: If the call is not a money call w here you ask for the sale, find a next
step you and the customer can agree on.
15. Gatekeepers: Dealing w ith gatekeepers is an important part of the sales process. Treat
them w ith respect; learn w hat you can.
17. Presentation: Present your product or service as a solution to the customer’s needs.
18. Overcome Objections: Deal w ith objections using the ACT method –
ACT: Acknow ledge – Clarify and Respond – Transition
19. Close: Ask for the sale. If the call is not a money call, ask for the next step. Close on
each call.
20. Trial Close: Use a trial close to “take the buyer’s temperature.”
21. Closing Statements: Use effective closing statements w hich signal the sale or “next
step” is complete.
Sales Technique
22. Customer Advocate: Take the view point of the customer on your calls. It is your job to
learn about your customers and w hat we can do to help their businesses.
23. Subsequent Call Openings: In your call openings later during the sales cycle, remind
the customer of the business issues that caused you to explore solutions together – it’s
all about them; it’s all about the customers.
26. Voicem ail: Do not leave unnecessary voicemail – try to talk to customers and use
conversation to advance the sales process.
27. Product Know ledge: Product know ledge is critical. You must educate yourself to be
able to pre-qualify solutions appropriate for your customers. You must be a resource for
your buyers.
28. Notes and Records: Keep detailed notes and records of each transaction in the contact
management system. Detailed notes are necessary for others in the organization to
support your efforts when you are away.
Development Plan
During the six months of this plan, complete the basic coursew are provided to you on telephone
sales skills.
The “Spring Ahead” promotion w ill be held during the last tw o weeks of February and the first
tw o weeks of March. You will begin calling your customer base on February 10th to sell this
service package.
ISR Name:
Date of update:
Account Categorization: (List the number of accounts for each PAR level)
PAR 12:
PAR 6:
PAR 4:
PAR 2:
Marketing and Promotion Plan: (List planned activities for the next three months)
Call Strategies/Emphasis Areas: (Identify focus areas for calls this month)
Identify the top 20% of your assigned customers by year-to-date revenue performance
(attach listing):
This is a sample marketing plan for an ISR sales group of three representatives. It may be
scaled to your Dealership as appropriate. This is the second document in a series of three about
a fictitious Caterpillar dealer called Sample Caterpillar. The first document is located under the
ISR Business Case tab (02-05).
The call outlines to support this Marketing Plan are found under the Getting Started tab of this
Guidebook (03-04, 03-05, 03-06 and 03-07).
Mem orandum
December 1, 2009
As you know , Larry, the inside sales representative (ISR) group has been very successful this
year. Nikki, Brett, and Bill have met our ROI objectives by generating an average $415,000 of
incremental revenue per ISR. In addition to this fine product support performance, w e also
generated 225 leads w hich resulted in 9 machine sales. Currently 23 of these leads are still
open, and I’m optimistic additional sales w ill accrue in the new year.
Last year, except for the introductory post cards, w e did not have a marketing budget because
we suspected the database w as “unclean” and w ere testing the ISR concept. This year I have
requested a mar keting budget w ithin this plan. Next year, I envision four promotions w hich will
combine an outbound telephone sales effort with a marketing campaign. We’ve cleaned up the
database and I feel joint promotions w ill be very effective.
I spent about 1/3rd of my time w orking w ith this group last year, w hich was per plan.
Sample Caterpillar
Inside Sales Representative Group
Marketing and Sales Plan
Fiscal/Calendar 2010
Results 2009
Targets
Results
Revenue
Expenses
ROI 42%
Revenue
Expenses
ROI 43%
Business Review
When I first prepared the business case, we considered adding just one ISR as a test. Because
the business case created from the coverage study was so compelling, w e added three out of
the possible four positions in 2009. The first year w as successful; w e generated $1.2 million in
incremental revenue and $78,000 in gross profit after expenses and overhead allocations. In
addition, 9 machine sales w ere closed from leads generated by the Inside Sales
Representatives (ISRs).
I propose adding a mar keting component to our plan this year and a fourth ISR in 2011. The
ISR position is developmental, w ith a planned duration of 18 months to 2 years before an ISR
transitions to other sales roles at the Dealership. During 2010, I expect our existing three ISRs
to transition to other roles in the Dealership.
Marketing
Each ISR has approximately 800 accounts in his or her cleaned database that
are called quarterly ( PAR = 4). I encourage them to open their calls w ith their customers in this
order:
Customer narrative – Something unique for that customer from the ISR’s notes
or
Customer service – PIP/PSP notices, PM TA1 reports, S•O•S reports, recent activity in
the shop, w arranty expiration, etc.
or
Specials/Promotions – A current marketing program
or
Something new for the customer’s equipment – A generated opening based on the
customer’s fleet
Regardless of how they open the call, they w ill alw ays mention and try to sell into the current
marketing campaign, unless the promotion does not fit the customer. By coordinating our
marketing campaigns on a quarterly basis, w e’ll have something new for the Inside Sales
Representative ( ISR) to discuss on each planned call.
I budgeted $5,000 per promotion w hich includes $2,400 in printing/ mailing/ production costs
($1.00/each x 800 customers/ISR x 3 ISRs) plus $2,600 in design costs. I envision using a post
card for the first and last promotion, and a letter w ith a brochure for the second and third
promotion.
Staffing
In June of 2010, our three ISRs w ill be on board 18 months. Because the ISR role is a
developmental position, I expect all three of the original ISRs w ill transition to other sales
positions in the Dealership by the end of 2010.
Nikki, w ho is selling pow er systems as an ISR, has her eye on landing a product support field
sales position. Bill w ould like to be a PSSR, and Brett w ould like to w ork w ith the mining group
as an account manager. I have talked to each manager in these respective areas; the hiring
decisions w ill be up to them, of course.
Development
Our coverage study indicated w e could support four ISR positions; currently, w e have three. I’d
like Sample Caterpillar to consider adding the fourth position in 2011. As noted above, w e’ll
have our first experience in transitioning betw een graduating ISRs this year. If w e budget for the
new ISR in the w inter of 2011, I can get this person up and running before the new team
transitions in 2012.
Connie, the manager of the used equipment area, has asked me to look into adding an ISR to
sell used equipment. She w ent to a Dealer Exchange last fall and heard from a Dealer w ho
deployed an ISR for used equipment w ith a great deal of success.
Jerry, the manager of the Rental Store, has also asked me to consider adding an ISR to support
their group. They have several thousand customers w ho do not get regular contact.
If w e grow our sales group to six individuals (our three existing positions, the additional ISR
product support position, plus the tw o positions mentioned above), I’d need to shed my
additional responsibilities and w ork full time w ith the ISR group. I’ll prepare a mar keting plan for
your review w ith this in mind.
Resource Key
Caterpillar ISR Message Board, an on-line community of ISRs is available for the ISR
and the sales manager. Post questions, meet others w ho are w orking in the same capacity and
participate in the exchange of know ledge and ideas. To obtain access, contact Jennifer Geist
jgeist@BPGrp.com or John Dieseth jdieseth@BPGrp.com at Business Performance Group,
515.440.4722.
Sales Manager: Building Customer Relationships Over the Phone, a 3-disc audio
program and Facilitator Guide for sales managers of ISRs ( Media Number PEBJ0006) is
available from Sales Effectiveness, Marketing and Product Support Division ( MPSD),
Caterpillar. Use in conjunction w ith the ISR course, Building Customer Relationships Over the
Phone. Includes answ ers to the exercises found in the ISR’s course, as w ell as ideas and
examples for the sales manager.
Coaching
Think about a good coach you have w orked w ith in your life
– w ho would that person be?
The tools in this section are designed to help you w ith the
task of coaching. It is not critical that you have sold over
the phone, only that you listen and can diagnose
improvement paths for your ISRs.
Role Perceptions
Aptitude
Salesperson Performance
Skill Le vel
Motivation Level
Contracting
Observation
Action
Comm itment
NOTES
Comm itment is the next phase in the coaching process.
Commitment is the agreement to take the steps required to
bring w hat is observed up to expectation.
Achieve
C Contracting
O Observation
A Action
C Commitment
H acHieve
Observation
Coaching Course
The sales manager course (Media Number PEBJ0006) contains a complete description of the
coaching model, a simulated dialogue of a coaching session, and a document you can use
during your coaching sessions.
Coaching Checklist
Observe the ISR to be coached, noting good sales technique and technique to be
improved
Consult the Skills Database for standard statements and development actions
Discuss the Business Development Plan w ith the ISR and secure his/her comm itment
to improve by having the ISR sign the plan; show your commitment by signing the plan
as w ell
Representative: Date:
Evaluator : Collated:
Skills Database
Document 08-02
Observation
Attitu de To ward ISR h as a p ositive Ma ke su re yo u sh ow a Customers loo k to you fo r thei r When you expre ss a posi ti ve
the Organi zati on attitude toward the positive attitude to yo ur clue s o n the val ues of ou r atti tu de, you r customers wil l
compa ny a nd its custo mers. prod ucts an d se rvi ces. A more hig hly value you r
pro ducts/servi ce s. posi ti ve a ttitude rei nforces the prod ucts and se rvi ces, an d
2 valu e we provide . Customers perce ive reduced ri sk, raisi ng
al so l ook to you to reassure sale s.
them abou t risk. You r po siti ve
atti tu de reduce s thei r a nxiety.
Sa les Strategi es ISR h as an effective Devel op strateg ies fo r ea ch A d evelo ped, well -bala nced A w ell-b alan ced te rri to ry wi ll Bui ldi ng Customer
sal es strategy category: cu stomers, territory i nvolves strate gies an d perform bette r ove r time, R elatio nship s Over
imp acti ng customers, prospe cts and susp ects. tacti cs to maximize customers, lea din g to a sta ble, hig h ru n- the Phon e: Mod ule
pro spects an d prosp ects and su spects an d rate of reven ue. 3 /Track 4 & Mod ule
susp ects. their contrib uti ons to sa les. You 4 /Track 1 0
nee d to de ve lop ne w
customers over time . Attrition i n
3 busi ness-to-busi ness is a fact
of l ife. Thin k of the farmer;
pl ant see ds to en joy the
harve st later on.
So lution s – ISR p re-qua lifies Use good q uestioni ng to Solu ti ons are attrib utes o f our By u si ng solu ti ons – Bui ldi ng Customer
Ad va ntages – be nefits b y askin g good uncove r pro duct sol utions prod uct or services. To find ou t adva nta ges – bene fi ts and R elatio nship s Over
Be nefits – qu esti ons and as bene fits to the customer. if the y are be nefits, we must que sti ons yo u will g enerate the Phon e: Mod ule
Questio ns ge nerates interest and ask th e cu stome r go od more excitement, a nd fo cu s the 2 /Track 2 & Mo dul e
excitemen t. que sti ons. Then we can sale s con versation on wha t 4 /Track 3
prese nt the ben efi t by saying most i nte rests the customer –
“you said ” – immed iately incre asing sal es.
4
gen erating i nte rest an d
enthu siasm for our offering s.
R efe rence ISR u ses re fe re nce Use reference stories to Referen ce stori es a re p owerful When you use referen ce Bui ldi ng Customer
Storie s stories to gene ra te provid e p roof a nd gen erate ana log ies th at pe ak cu stome r sto ries you wil l cre ate g reat R elatio nship s Over
excitemen t and o ffer excitement. in tere st and pro vi de a measure visua l i mages that wi ll resul t in the Phon e: Mod ule
pro of ou r pro ducts an d of p roof me re statements from more confide nt customers and 2 /Track 7 & Mo dul e
service s sol ve the salesp erson cann ot match. hig her sale s. 2 /Track 8
customer busi ness Reme mb er, 35 % o f the human
issu es. brai n is d edi ca te d to visua l
imag es. Pla nt excitin g a nd
5 memorab le imag es for your
customers using storie s –
stories th at refer to you r
prod ucts an d se rvi ces a nd the
valu e the y pro vi de to yo ur
customers.
Observation
Open ing the ISR o pens call s U se a comp elli ng reason to Wh en you use a good Whe n yo u o pen with a goo d Bu ild ing Customer
C all effecti ve ly using a ca ll to o pen each sal es call. co mpell ing rea so n to cal l to comp elli ng reason to call , the Rela tio nship s Over
compe lli ng reason to open a call , the customer w ill customer wil l be enga ged an d the Pho ne: Mod ule
cal l. be enga ged and i ntereste d. i nte reste d, le adi ng to hi gher 3/Track 2 & Modul e
Wh at is compel lin g for the sal es. 3/Track 9
cu sto me r to listen? Ask
7 yo urself thi s q uestion, and then
cra ft a ca ll ope ning aro und the
answer. R emember, it is al l
abou t th em – al l abou t the
cu sto me r.
Gene ra l Pro bin g ISR a sks goo d probi ng Ask one more pro bing Be fo re e ach call, have in mind By asking on e mo re q uestion Bu ild ing Customer
Skil ls qu esti ons, cl osed- and q uestion pe r cal l. a n ew open -ended q uestion to d uring ea ch co nversation, you Rela tio nship s Over
op en-end ed, ask the customer abou t his or wi ll lea rn mo re a bout th e the Pho ne: Mod ule
establ ishin g sa les her busin ess n eeds. This customer and can re fin e the 4/Track 3, Modul e
di alog ue. question sho uld be of th e “tel l sal es process fo r the potentia l 4/Track 5 a nd
me ” or “descri be to me” typ e sal e. Mod ule 4/Tra ck 6
8 desig ned to fin d o ut more
abou t th e b usine ss to hel p
guid e the sal es cycl e. Ask o ne
mo re q uestion .
Prob ing for ISR a sks abo ut bu dget, Ask abo ut the customer’s Yo ur time an d the time of you r Whe n yo u a lig n you r p ro posed Bu ild ing Customer
Bud get facili ta ti ng th e b udge t for so lving the cu sto me r is valu abl e. By sol ution to the customer’ s Rela tio nship s Over
recommen dation of th e b usine ss i ssu e w hen probi ng for the bud get to solve b udge t, you a chieve a better the Pho ne: Mod ule
ap propria te pro duct or a pprop riate. the b usiness issue a t han d, you match, l eadi ng to g reater sa les. 4/Track 6
service. are able to prope rly tai lor your
9
offeri ng to the clie nt's ne eds.
Prob ing for ISR p ro bes fo r the Ask abo ut the buyin g Man y i ndivi dual s may have an Whe n yo u i dentify the bu ying Bu ild ing Customer
Buyi ng bu yi ng committe e a nd co mmi ttee to iden ti fy all the impact o n yo ur a bil ity to se ll a commi ttee, yo u w ill id entify al l Rela tio nship s Over
C ommi ttee finds ou t all of th e p otential de cision make rs – particula r sol ution. By prob ing o f th e ri sks, nee ds a nd the Pho ne: Mod ule
in divid uals affe cted b y formal o r in fo rma l. for buyi ng committee , you have timel ines, lead ing to high er 4/Track 6
the busi ness i ssue. a mu ch b etter chan ce to sal es.
address the need s, ti meli nes
and risks of everyon e who will
10 have inp ut in to the choi ce o f
yo ur so lution . Your job is to se ll
to everyon e who has a vo ice in
the d ecision -making pro cess.
Observation
Prob ing for ISR d oes a g ood jo b o f Pro be for the gen eral nee ds Be sides gen erating excitemen t By probi ng fo r ge neral ne eds, Bu ild ing Customer
N eeds prob ing for gene ra l o f the buyer – not o nly with sp ecific bene fi ts, a lso ask you wi ll prop erly alig n our Rela tio nship s Over
ne eds to al ign ou r tho se co nnected with the b uyer a bout th e g enera l p ro ducts a nd services with the the Pho ne: Mod ule
prod uct an d se rvi ces a s sp ecific produ ct or se rvi ce need s of the o rg ani za ti on. customer’ s req uiremen ts 4/Track 6
sol uti ons. a ttribu te s. Wh at el se d o yo u need to know l eadi ng, to hig her sales.
to po si ti on your produ cts or
se rvices co rrectl y? For
example, is the n umber of
employe es i mportant? Is how
12 the y con duct thei r bu siness?
The eq uipme nt they own?
Determine wha t you nee d to
kn ow to do a n e ffective job of
diag nosin g a nd prescrib ing.
Prob ing for ISR p ro bes fo r timel ine Pro be for timeli ne. U se the Timel ine is impo rta nt in Whe n yo u p robe for timel ine , Bu ild ing Customer
Timel ine effecti ve ly and uses th e i nformation to ma nage the busin ess-to-b usine ss. Wh en you wi ll mana ge both yo ur time Rela tio nship s Over
in formatio n to gu ide sa les cycl e and pl an th e does th e buyer see solvin g the a nd th e b uyer’s. This wil l lead the Pho ne: Mod ule
an d man age the sale s i nvestment o f your ti me . busin ess i ssu e? So me ti me s to more effici ency and hi gher 4/Track 6 & Modul e
proce ss. the n eed is immedi ate – at sal es. 4/Track 11
13 oth er times it is l ong term. By
probi ng for timeli ne, yo u w ill be
able to manag e the sal es
process and your time
effectivel y.
Observation
Gatekeep ers ISR e stab lishe s go od Establ ish goo d ra pport w ith Gatekee pers hold the keys to By devel opin g re lation ships Bu ild ing Customer
rapp ort wi th g atekeepe rs an d ask for the ki ngdom in man y wi th ga te ke epers, yo u will l earn Rela tio nship s Over
ga teke epers and asks the ir h elp. organi zati ons. They also kno w val uabl e information an d g ain a the Pho ne: Mod ule
for the ir h elp. the a nswers to many of you r key al ly i n the acco unt, lea din g 3/Track 2 & Modul e
question s. Trea t gatekee pers to hig her sales. 4/Track 12
15 with re spect an d ask for th eir
help . Th eir job is to h elp thei r
organi zati ons – th e sa me a s
yo ur ro le.
C ro ss-se lli ng ISR cross- and up -sells Make sure the buye r is Cross- a nd up-sel ling a re u sed Whe n yo u cro ss- and u p-sell Bu ild ing Customer
a nd Up-sel ling effecti ve ly and provid es co nside ring the appro priate to make sure the buyer is e ffectively, b uyers w ill pu rchase Rela tio nship s Over
the customer w ith the p roducts a nd services fo r co nside ring al l of the auxil iary the be st solutio n to their nee ds, the Pho ne: Modul e
be st solutio n to their the ir si tu ati on. ite ms req uired an d the l eadi ng to satisfied cu stomers 6/Track 11 & Modu le
ne eds. approp riate level o f produ ct or a nd high er sa les. 6/Track 12
se rvice. By asking go od
16 tran siti on que stio ns, an d the n
presentin g p re-qua lified
so lution s, you wil l ensure the
buyer is getti ng what is n eede d
to ad dress the bu siness issue .
Prese nti ng ISR h as g ood U se a con versationa l Pre -qual ifyi ng solu tio ns a s By using a con ve rsa ti on Bu ild ing Customer
Prod uct or prese nta ti on a pproa ch to your important to the custo mer a pproach to your presentatio ns, Rela tio nship s Over
Servi ce techni ques and a p resentation s. Use “you allo ws you to presen t th em you wi ll keep the buye r the Pho ne: Mod ule
conve rsa ti onal sa ids” to pre sent b enefits co nversation ally by using “you e ngag ed, i nte reste d and 1/Track 11 and
ap proach. a nd use short statements sa id,” “you men ti oned ” or “you l iste nin g – this wil l result in Mod ule 5 (entire
tha t eng age the buyer. tol d me .” Break your b etter sale s pe rforman ce. mo dule )
17
presentation i nto 3 5-second
se gments a nd th en re-eng age
the b uyer w ith a trial clo se or
another que sti on.
Observation
C losin g ISR cl oses effectivel y C lose by payin g a ttentio n to Wh en buyers are ready to By closin g e ffectivel y, yo u will Bu ild ing Customer
Effe cti ve ly by sensin g the b uyer’s b uying sig ns, summari ze cl ose, the y typical ly ch ange a sk for the sal e mo re Rela tio nship s Over
read iness to cl ose, a nd th en offe r a concrete the ir behavi or o r a sk to g o over p ro ductively, increasi ng your the Pho ne: Mod ule
summarizi ng effectivel y b usine ss pro posal – wha t the p ro posal o ne last time. sal es. 7 (e nti re mo dule )
an d o fferin g a co ncrete yo u a re a sking the buyer to Wh en you close, summa rize
bu si ness propo sal. p urchase. the top ben efits for the
cu sto me r an d the n offer a
co ncrete busin ess p ro posal –
19 what you a re a ski ng the buyer
to bu y. Thi s bu siness prop osal
sh oul d co nta in th e product or
se rvice, the timeli ne fo r de livery
and the investment re quire d.
Trial Cl ose ISR u se s g ood tri al U se tria l cl ose que stio ns to A go od tria l close is used to get Whe n yo u u se a g ood tri al Bu ild ing Customer
clo se s to “ta ke the “take the buyer’ s the b uyer’s poin t of vi ew. Do es cl ose, you wi ll han dle Rela tio nship s Over
bu ye r's tempera ture ” tempe ratu re” a nd uncove r the b uyer h ave obje cti ons yo u o bjection s ea rlie r an d the Pho ne: Mod ule
an d to unco ve r an y a ny o bjectio ns. need to overcome? How do es u nderstand the buyer’ s op ini on 6/Track 1 & Modul e
ob jections the buyer the b uyer fee l a bout your o f your solutio n p rior to aski ng 6/Track 2
may have. so lution ? Yo ur p roduct o r for th e sa le. This wil l increa se
se rvice? A trial clo se i s use d to you r cha nces of sal es su cce ss.
20 “take the buyer’ s tempera tu re .”
It i s n ot a defin iti ve statemen t
like the close, bu t rather a way
to stimula te di alog ue and
unde rstand ing .
C losin g ISR u se s g ood closi ng Ask fo r the sale . Use Wh en we have successfull y Whe n yo u a sk for the sal e, you Bu ild ing Customer
Statements state ments – d efinitive clo sing traverse d the sal es cycle a nd wi ll get more orders and the Rela tio nship s Over
state ments that when statements th at le ave no accompli shed all o f the step s satisfaction from su ccessfu lly the Pho ne: Mod ule
an sw ered lea ve n o d oubt of the buye r’ s arti culated by th e buyer, i t is comp leting the sale s pro cess. 7/Track 6
do ubt the sale s i s i ntention s. time to ask for th e sale. The This wil l grow your revenue
compl ete. buyer will e xp ect us to a sk for d ra mati call y.
the b usiness, and it’s your job
21
as a sal esperson to ask a
question to which you r bu ye r
ca n respond “yes.” Make sure
yo u ask for th e sa le.
Observation
Achieve
Item Desc ription Praise Development Action Development Action Plan Outcomes
Resource s
Customer ISR takes the viewpo int Pull inste ad of push. Be on If we take the customer’s By taking the customer’s Build ing C ustomer
Advocate of the customer and the side of the customer viewp oint, we often get viewp oint, you’l l ali gn yours elf Relati onsh ips Over
becomes the “looki ng at us,” not the permissi on to prese nt multipl e with buyers a nd make mor e the Phone: Modul e
customer’s adv ocate to other way aro und. offerings, not just the first sales. 3/Track 9 & Module
solve their b usin ess product or servic e consi dere d. 4/Track 3
issues. If we are working w ith a
customer who d oes not lik e our
initia l offer, we can comfortably
suggest other items for the
customer to consid er, if we
keep referri ng to the
22 customer’s issu e, not our
products or servic es. It’s all
about la ngu age – a nd ho w you
positio n yourse lf to the
customer. Remember, you ar e
in a bou ndary p ositio n – one
leg in the custom er’s bus iness
and on e leg i n your comp any’s
– help the custom er find the
best solutio n from his or her
point of view.
Openin g the ISR reminds the buy er When you op en the cal l, The salesp erson is res pons ibl e When you lo ok at the busin ess Build ing C ustomer
Call – In the of his or her busi ness remind the b uyer ho w you for advanci ng the sal es issue – not the pro duct or Relati onsh ips Over
sales proc ess Issue, making the cal l got started – what busi ness process. Buyers wi ll be re liev ed service – you h ave a better the Phone: Modul e
about solv ing the iss ue, issue caus ed the two of you and impr essed w hen yo u take chance of clos ing. 1/Track 7, Module
not the ISR’S products to begin a sa les cycle. respons ibi lity to manag e the 1/Track 13 & Module
or services. buyin g process, take care of 3/Track 9
the details a nd make
recommen datio ns. Keep the
“buyin g bal l” with the buy er and
the “sales cycle b all” for
yourself . It’s all about the buy er
23 – make sure he or sh e
remembers w hy you got started
in the first place. You are n ot a
probl em – “Why is this
salesp erson ca lli ng me ag ain?”
You are a sol ution – “H e’s her e
to help me with my pro blem.”
Observation
Tone of Voice ISR u se s a gre at tone U se ton e o f voice to let the Expe rts say i n face -to-face By using a gre at tone of vo ice, Bu ild ing Customer
of vo ice, wh ich cu stome r kno w you are me etings, 3 8% of the message you ’ll commun icate yo ur Rela tio nship s Over
en gages the customer i nterested and en gage d. is co mmu nicated by to ne of i nte rest to cu sto me rs an d g et the Pho ne: Mod ule
an d e nhan ces p hone vo ice, 5 5% by b ody lang uage them eng aged . Your enga ged 1/Track 1
cal ls. and 7% by word choi ce . Ove r customers wil l buy mo re from
the tele phon e, we do no t have you .
body lan guag e a t our disp osal,
me anin g ton e of voice an d
word choice i s critical .
Tel epho ny e quip me nt red uces
the n uances of ton e o f voice .
Be cause of thi s, we need to
ma ke su re w e u se ton e o f voice
as p ositively and e ffectively as
25
possibl e. You r tone of vo ice
sh oul d i ndica te a keen i nterest
in th e cu stome r. Your ma ntra
sh oul d b e “i t’ s al l abou t them.”
Use phrases such as “tel l me
mo re” a nd “describ e that to me”
to op en up th e ca ll.
Observation
Prod uct ISR h as g ood prod uct L earn abo ut ou r p ro ducts Yo ur cu stomers lo ok to you as Whe n yo u a re kn owle dgea ble Pa rts Pro
Kno wled ge know ledg e a nd uses a nd services to a ct as a a re source. This doe sn’t me an a bout our products and
this knowl edge i n re source fo r ou r customers. yo u need to know everyth ing servi ces, your customers w ill
situatio ns wi th abou t our produ cts or services, see you a s a consu ltant,
customers. but you do n eed to kn ow where b oosting sale s.
to ge t answe rs if custo me rs
27 have questio ns yo u ca nnot
co mfortabl y a nswer. Le arn
abou t our produ cts and
se rvices and where to go within
the o rg aniza ti on when you
need he lp.
N ote Taking ISR takes goo d, ea sy- Take goo d notes to The typical tele phon e Whe n yo u ke ep good n ote s, Bu ild ing Customer
to-fo llo w n ote s from d ocument th e sa les re presen tative ha s many more you wi ll adva nce mo re sa les Rela tio nship s Over
telep hone cal ls and the p rocess and to a ssist other accounts tha n me mory can cycle s an d a ssist membe rs of the Pho ne: Mod ule
sal es p rocess. me mb ers o f your te am. se rve. Care ful ly-ta ken notes you r team, i mproving sal es. 8 (e nti re mo dule )
will assi st in movin g the sal es
process alon g and
28
documen tatio n w ill he lp other
me mbers o f your team w ho
need to step i n w hile you a re
out o r bu sy.
Document 08-03
Nam e: XXXX
Date: XXXX
Department: XXXX
ISR has efficient organizational skills. ISR has a positive attitude tow ard the company and its
products/services. ISR has an effective sales strategy impacting customers, prospects, and
suspects.
Development Actions:
Solutions are attributes of our products and services. To find out if they are benefits, we
must ask the customer good questions. Then w e can present the benefit by saying “You
said …” – immediately generating interest and enthusias m for our offerings.
Reference stories are pow erful analogies that peak customer interest and provide a
measure of proof mere statements from the salesperson cannot match. Remember, 35% of the
human brain is dedicated to visual images. Plant exciting and memorable images for your
customers using stories – stories that refer to your products and services and the value they
provide to your customers.
When you use a good compelling reason to call to open a call, the customer w ill be
engaged and interested. What is compelling for the customer to listen? Ask yourself this
question and then craft a call opening around this statement. Remember, it is all about them –
it’s all about the customers!
Outcomes:
When you use reference stories, you w ill create great visual images that w ill result in
more confident customers and higher sales.
When you open w ith a good compelling reason to call, the customer w ill be engaged and
interested, leading to higher sales.
Follow-Up Activities
______________________________
Representative
______________________________
Coach
_______________________________
Date
Resource Key
Caterpillar ISR Message Board, an on-line community of ISRs, is available for the ISR
and sales manager. Post coaching questions get answ ers and participate in the exchange of
know ledge and ideas. To obtain access, contact Jennifer Geist jgeist@BPGrp.com or John
Dieseth jdieseth@BPGrp.com at Business Performance Group, 515.440.4722.
Sales Manager: Building Customer Relationships Over the Phone, a 3-disk audio
program and Facilitator Guide for Sales Managers of ISRs (Media Number PEBJ0006)
discusses management and coaching. This program is available from Sales Effectiveness,
Marketing and Product Support Division (MPSD), Caterpillar. Use in conjunction w ith the ISR
course, Building Customer Relationships Over the Phone. Includes answ ers to the exercises
and examples for the sales manager.
Leading High-Impact Sales, a 2-day facilitator-led inter mediate level course is available
for ISR managers. To schedule, contact Erech Virden, Sr. Marketing Consultant in Caterpillar’s
Sales Effectiveness Marketing Pr oduct Support Division (MPSD) at virden_h_erech@cat.com or
309.494.583
Leading
About Leading
~ Peter F. Drucker
Role Perceptions
Aptitude
Salesperson Performance
Skill Level
Motivation Level
Sales Culture
A sales culture can be defined as the collective mindsets of
its members. Mindsets are how we see the world – they
reflect a set of beliefs formed through experience. The
mindsets of salespeople determine how they filter and
interpret their sales w orld. This influences their decision-
making processes and their behavior.
Storytelling
NOTES
A sales organization can benefit from sharing stories. The
best stories are reference stories – stories of how a
customer has solved a business issue using your
Dealership’s products or services.
Sales Meetings
Sales Contests
Leading Checklist
Sales Meetings
Scheduled
New Products/Services
Game or Activity
Sales Contests
Planned
Organized
Held
Communicated
Program Designed
Communicated
Implemented
Goal
Reference Story
6. End result
Reference stories are designed to help the potential buyer see that you understand his
problem and are capable of providing a solution. Used appropriately, the y can give the
potential buyer confidence and help you close the sale.
Tools
Discuss.
Using a compelling reason to call is also a way for you to retain the “sales cycle ball” –
to move forward on the series of tasks necessary to help the buyer reach a good
decision.
Example:
Goal
Two days before the sales meeting, tell each ISR to bring a
customer situation to the meeting and to be prepared to
describe the customer’s equipment and business issues to
the group. The group will then help the ISR determine the
Tools best course of action with the account.
Share a generic case study (see the next page for ideas)
with the participants and brainstorm possible next steps.
* Fluid/filters agreement
* Do you know if this customer needs any work tools for these
pieces of equipment?
* Does this customer need any additional buckets for the backhoe
or excavator?
You will need to bring a pair of dice and items to use to mark
Tools a box once it is “completed” – coins, nuts and bolts, candies,
etc., or you can have the participants mark a completed box
using a pencil or pen.
Explain the instructions: You will roll the dice and add up
the totals on both dice (2 to 12). Totals 2 through 10
correspond to the labeled boxes. 11s and 12s are “wild” and
if rolled, the participants can choose any box.
Activity
In order to mark a box in Customer Bingo, a sales
representative needs to identify a customer whose name
begins with a letter inside of the box and something about the
customer. In box 10, “#” stands for any customer whose
name begins with a number or non-alphabet character. When
a “wild” is rolled, the sales representative must first identify
the box he or she is attempting to mark. Go around the room
until each representative who can identify a customer and
something about the customer has done so.
Customer Bingo!
2 3 4
A B C D E F G H I
5 6 7
J K L M N O P Q R
8 9 10
S T U V W X Y Z#
Goal
Tools Use the example on the next page to prepare the group.
Copy the blank matrix on the page that follows for the ISRs to
use to complete the exercise.
1 End caps of Cat Filters are Glued caps can have gaps Is keeping your engine
not glued – they are which allow contaminants to get free of contaminants
inserted into the liquid into the engine. important to you?
urethane.
2 Cat Filters are made with a Metal tubes can deposit metal Is keeping your engine
non-metallic center tube – contaminants from the free of contaminants
they are made with nylon. manufacturing process into important to you?
your engine’s fluids.
3 Cat Filters are made with a Spiral roving insures the pleats Is keeping your engine
fiberglass spiral roving. will not flex and release free of contaminants
contaminants into the oil or fuel. important to you?
4 Cat Filters are made with a Nylon is 30% stronger which Do you ever use your
non-metallic center tube – helps prevent collapse during equipment in cold
they are made with nylon. pressure spikes and cold oil weather?
start-ups.
5 Cat uses acrylic beads to Pleat bunching is a common Have you ever needed to
maintain pleat spacing. problem with other filters. replace a filter before it
was due for normal
replacement?
6 Cat uses a resin The resin filter lasts longer. In reduced downtime
impregnated filter media. important to you?
Product: ____________________________
Goal
Tools
Divide the group into teams of two. Have each group write
down a challenging objection they have heard from a
Activity customer.
Instructions : Challenge the other members of your sales group by writing down a
difficult objection you have heard from a customer, and then exchange worksheets with
another team. Your job will be to provide a response to the objection on the worksheet
you receive. When you are finished, return the worksheet with your response to the
team that gave it to you.
Objection!
ISR Response
# Types of Description
Objections
1 Lack of interest This is when the customer is not interested in your solution because the
and perceived customer can’t see how what you are offering helps him.
value
* Beginning of the sales cycle
* Interest is the currency used to pay for the customer’s time to learn
about the product or service and make a decision
2 Lack of a timeline In this case the customer recognizes the problem but doesn’t envision
to solve the solving the problem as a priority in the foreseeable future.
problem
* Too busy – other things to do
4 Perceived risk in In this case the customer sees how your solution solves a problem, but
buying also sees the risk of buying – is fearful of what can go wrong.
# Types of Description
Objections
5 Lack of budget In this scenario the buyer has a need and understands your product or
service can solve that need, but doesn’t have the money to move
forward.
6 Issues with the The buyer has a need and a timeline to solve the need, but your
product or product or service has features that cause the buyer to object.
service
* Objections to features of your product or service – rarely does a buyer
get everything perfect – know your competition’s products
7 The stall – “Do The buyer has a need and a timeline to solve the need, but the sales
Nothing” cycle pauses, typically because of risk.
* Price objection can either be the value doesn’t equal the price you are
charging or the customer wants to talk terms – wants to negotiate to
make sure he gets a fair deal
Objection 8: Price
Prevention
A price objection is usually caused by one of two things: either
the value doesn’t equal the cost or the customer wishes to set
the terms; to negotiate. Establish value by pre-qualifying
benefits. Negotiate when the customer desires to set terms.
Customer: No. I guess it’s just when I see it in black and white
it seems like too much money. Can you trim a little off?
Price Objection
Totals:
Resource Key
Sales Manager: Building Customer Relationships Over the Phone, a 3-disk audio
program and Facilitator Guide for sales managers of ISRs (Media Number PEBJ0006)
discusses management and coaching. This program is available from Sales Effectiveness,
Marketing and Product Support Division (MPSD), Caterpillar. Use in conjunction w ith the ISR
course, Building Customer Relationships Over the Phone. Includes answ ers to the exercises
and examples for the sales manager.
Adding ISRs
This is the third document from Sample Caterpillar, a fictitious Caterpillar Dealership, and
represents the third year of their ISR initiative. The first business plan is under the ISR Business
Case tab (02-05); the second business plan is found under the Managing tab (07-03).
The call outlines to support this Marketing Plan are found under the Getting Started tab (03-04,
03-05, 03-06 and 03-07).
Memorandum
December 1, 2010
Our original three ISRs – Nikki, Brett, and Bill – all moved on to other sales positions this year.
We have replaced the original three and I believe our success indicates we should expand the
program this year.
In 2011, I recommend w e add the fourth product support ISR, filling the last territory I also
recommend w e add tw o additional ISRs; one ISR selling used equipment and another dedicated
to selling rentals. This w ill give us a staff of six ISRs.
A sales staff of this size will generate enough revenue to justify a full-time sales manager of
inside sales.
Sample Caterpillar
Inside Sales Representative Group
Marketing and Sales Plan
Fiscal/Calendar 2011
Results 2010
Targets
Results
Revenue
Expenses
ROI 51%
Proposed Budget
Revenue
Expenses
ROI 35%
Business Review
Last year was another successful year for the ISR team. Revenues increased by 40% to $1.74
million and gross profit delivered to the Dealership increased 61% to $126,235. The team also
provided leads w hich closed for 14 machines generating $854,500 in revenue.
During 2010 our three original ISRs – Nikki, Brett, and Bill – all transitioned to other sales
positions at the Dealership. Nikki, w ho was supporting Pow er System’s customers as an ISR,
transitioned to a field sales product support position in Pow er Systems; Bill and Brett are both
PSSRs. Brett w ould like to get over to the mining group, but they suggested he gain additional
sales experience before taking that step.
In 2010 w e launched our first sustained marketing campaigns. We offered quarterly promotions
with a mail piece. The telephone sales efforts were coordinated w ith the mailings.
The marketing effort did tw o things for us: First, the promotions kept the sales group focused
and alw ays gave them something to say to open their calls. Second, it helped us increase our
sales over plan by providing a sales stimulus.
During 2010 w e began planning the grow th of the telephone sales center into tw o additional
product lines for next year – rental and used equipment – and adding the fourth product support
ISR position. I recommend w e move forward w ith all three positions; my budget for next year
reflects this recommendation.
Product Support
Our initial coverage study recommended four product support ISRs. Given our success so far, I
recommend w e add the final position next year.
Rental
The rental store has a database of 6,812 customers. I did a query and found 1,712 w ere small
rental uses (< $ 1,000 annually); 2,346 w ere contained in PSSR territories, and 1,412 w ere
current ISR customers. This left 1,342 accounts. If these accounts are qualified at the rate of
70%, this w ould leave 939 rental customers for the ISR territory.
Used Equipment
We receive about 825 inquiries for used equipment annually – 55% are typically from non-
Sample Caterpillar customers. If the current customer accounts are turned over to the
salespeople, and the non-Sample customers are given to the ISR, the ISR w ould have about
454 leads to follow -up annually. In addition, w e have a database of non-Sample customer
inquiries from the past tw o years (about 800 names). The ISR w ill call into this database w hen
not dealing w ith the current lead stream.
One of our marketing activities last year w as to invite ISR product support customers to a “ CCE
Roundup Days.” This w as very successful. We held tw o events w ith 16 customers at the first
event and 22 at the second event. Within 30 days of the events, 3 skid steers were sold, plus
various w ork tools.
During 2011, I’d like to research the possibility of adding additional ISRs to sell CCE equipment
using this model.
FAQs
For more information, refer to the section of the Guidebook listed beneath the question.
1. What is the role of the inside sales function in your Product Support Marketing
Plan?
The ISR position is a full sales role that includes customer management, sales
proposing, and customer maintenance functions. An ISR usually contacts customers
with one to six Caterpillar machines and has 800 to 1, 200 qualified customers.
2. How can PTOS help a Dealer identify the need for an ISR position?
PTOS provides sales opportunity, equipment data, and DCAL information to Dealers. It
can track and report on products and customers by age, location, family, and industry.
PTOS also allow s you to identify opportunity, w hich becomes the basis for decisions
regarding sales coverage – including the ISR position. PTOS allow s you to quantify your
total opportunity.
3. How does a coverage study help the Dealer justify hiring ISRs?
A coverage study is designed to identify Dealer parts and service opportunities and the
optimum number of ISRs and PSSRs based on established benchmarks. A coverage
study can establish a “barometer” for the Dealership and help deter mine w hat is
happening regarding sales of parts and service.
The customer segment assigned to ISRs is usually customers w ith one to six machines.
Also, if a customer is not assigned to a PSSR, that customer should be assigned to an
ISR.
Planned Annual Rate of call or PAR differs based upon the opportunity in the account
and customer preference. Some accounts are called once a month. The typical minimum
is a PAR of 4, or quarterly contact.
Some Dealers use a dollar metric to decide PA R, for example annual sales.
6. When w ill account assignments be changed from inside to outside coverage and
from outside to inside coverage?
An account may grow under the ISR’s guidance, either in sales volume or by the
purchase of more machines, so the criteria for changing account assignments should be
established in advance to avoid any confusion or hard feelings.
Customers may have input as w ell. Some may feel the relationship they have w ith their
ISR is important. Others, w ho are now big fishes in the ISR’s pond, may not w ant to go
back to being s mall fishes in the PSSR’s pond. The sales manager should be prepared
to make exceptions for certain customers.
The choice of metr ics depends on the territory, the experience of the ISR, and the
Dealer.
Common activity measurements are dials, phone time, and proposals. Typical results
measurements include overall revenue, revenue gained over the previous results, and
grow th vs. overall Dealer grow th in similar products and services. Because ISRs w ork
inside the Dealership, many metrics can be developed.
ISRs contact all customer segments, Do-It- Myself (DIM), Work-With- Me (WWM) and Do-
It-For-Me ( DIFM).
The same products and services that a PSSR offers to customers should be offered by
the ISR, including all Cat parts product brands (Reman, Classic, and Nexus), Dealer
exchange and used parts product lines, repair parts for allied products, and Dealer
service offerings such as S•O•S.
10. What m arketing campaigns and prom otions should be considered to support the
inside sales launch and ongoing operation?
To maximize the immediate inside sales value to customers and to promote solid
business relationships, special offers or information customized to customer needs may
be sent out upon project launch and every three months thereafter.
The overall message to targeted customers is the Dealership’s desire to help them keep
costs down and maximize the effectiveness of their equipment maintenance efforts.
Promotion packager can be used to support this effort.
11. Are there unique or seasonal prom otions that have high potential for accounts
assigned to inside sales?
Many Dealers w ho have implemented the ISR initiative use seasonal promotions; for
example, antifreeze in the late fall.
Customer events held at the Dealer’s location, such as “Cat Care,” are also helpful and
allow ISRs the opportunity to meet their customers face-to-face.
12. What is the breakeven point in sales to justify one inside sales
resource?
The breakeven point in sales is dependent on the cost structure of the ISR position and
the margins of the components that make up projected revenue. Document 02-01 can
assist you in calculating the breakeven point at your Dealership.
13. How m any ISRs should be hired to cover the available opportunity?
An ideal ISR territory is 800 to 1,000 customers, although many ISRs w ork a territory of
1,200. If this is a new position and the accounts have not been contacted before, 25% –
30% of the accounts are typically disqualified during the first contact because the
business no longer exists, the user is a “recreational user,” or other reasons.
14. How should the success of the inside sales function be measured?
The clearest definition of success is the increase in revenue you achieve by adding the
position and the annuity stream generated over time.
15. This Guidebook contains a series of financial metrics you can use to measure the
success of the ISR position.
16. What is the best source for candidates for the ISR position?
If you ask this question of Dealers w ho have implemented this position, they w ill give you
a variety of answers. Some have hired from w ithin the Dealership, placing a high value
on product know ledge. Others hire aggressively outside of the Dealership, looking for
individuals w ith demonstrated sales skills – specifically phone sales experience.
Often times the initial ISRs come from w ithin the Dealership and then once the position
is established, additional hires come from the outside the Dealership.
17. Your Dealership w ill need to decide w hether the ISR position is a stepping stone tow ard
a PSSR or other sales position, or an end to itself.
18. What is the job description of an ISR and what is required to be qualified for this
position?
The Selection tab of the Guidebook contains an ISR job description and typical
qualifications used by other Dealers.
19. How can the Dealership ensure they hire the person w ith the optim al innate
talents and personality m atch for the job?
An optimal selection process involves a resume grading process (for past experience
and education), a telephone interview , a face-to-face interview , personality profiling, and
“job shadow ing.”
20. What sales com petencies w ill need to be developed in the ISR position?
Sales competencies for the ISR position are similar to those of a PSSR position, except
for additional competencies necessitated by the telephone sales platform. See 04-03.
Recommended plans can be found in the Guidebook. See the Or ientation tab for Dealer-
facing training and the Training tab for customer-facing training.
A typical compensation structure consists of a base salary plus some “at-risk pay”
(commission or bonus), and any applicable Dealer gain sharing. The commission can be
based upon attaining and/or exceeding a specified sales target for the assigned
accounts, or sales targets for parts and service solutions.
23. What types of perform ance objectives should be set for ISRs to effectively
m anage their sales environment?
Success in the ISR position is based on a high activity rate. The more customers that
are proactively contacted, the higher probability that a sale can be made. Careful
consideration needs to be given to setting reasonable, yet aggressive, short-term sales
activity targets.
05-01 New ISR Orientation (individuals promoted from w ithin the Dealership)
05-02 New Hire ISR Orientation and Training Document
05-03 Sample Questions for ISRs to Use
05-04 Call Outline: Initial Call to Customers (No Announcement)
05-05 Call Outline: Initial Call to Customers (Announcement)
05-06 Call Outline: Preventive Maintenance
05-07 Call Outline Template
05-08 Departmental Observation For m for New ISR
05-09 Introductory Email for New ISR
06-01 Synopsis and Table of Contents: Building Customer Relationships Over the
Phone, self-directed foundation level course for ISRs
06-02 Shadow ing Observation For m
06-03 First-Year Training Plan
06-04 Synopsis and Table of Contents: High-Impact Telephone Sales, facilitator-led,
inter mediate-level course for ISRs
06-05 Synopsis and Table of Contents: Leading High-Impact Sales, facilitator-led,
inter mediate-level course for sales managers