CAT Isrc Guidebook Engine 031709 Rev F

Product Support Inside Sales Representative
Implementation Guidebook – Power Systems

P age |2
© 2009 Caterpillar, Inc.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or
otherw ise, w ithout the prior written permission of Caterpillar, Inc.
This publication is designed to provide accurate and authoritative information in regard to the
subject matter. It is sold w ith the understanding that Business Performance Group, Inc. is not
engaged in rendering legal, accounting, or other professional service. If legal advice or other
expert assistance is required, the services of a competent professional should be sought.
Written by John Dieseth, President, Business Performance Group, Inc.
2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

P age |3
Table of Contents
Tab Topics
01 – Introduction..................................................... 13
02 – ISR Business Case…………………………….. 23
03 – Getting Started…………………………………. 101
04 – Selection………………………………………… 141
05 – Orientation………………………………………. 201
06 – Training………………………………………….. 247
07 – Managing……………………………………….. 273
08 – Coaching………………………………………... 303
09 – Leading………………………………………….. 325
10 – Adding ISRs…………………………………….. 357
11 – FAQs…………………………………………….. 365

P age |4
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
ISR Business Case

Executive Overview: About the ISR Business Ca se 23
The Market Opportunity: Four Key Components 24
Sales Coverage PTOS Opportunity 25
Coverage Studies 27
Metrics and Measurements 28
Dealer Case Studies 30
01-01: ISR Business Ca se Worksheet 81
ISR Business Ca se Worksheet Explanation 82
ISR Identified Critical Success Factors 83
ISR Business Ca se Checklist 84
Documents for Your Use Included under this Tab – ISR Business Case 85
02-02: ISR Quantitative Measurements 87
02-03: Outbound Telephone Sales Representative Metrics 90
Resource Key – ISR Business Ca se 93
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

P age |5
Detailed Topic List
Service Points 115

Unique Promotional Opportunities 138
Do-It-Myself Promotional Offering Considerations 138
Getting Started – Assuring Your ISR is Successful 139
Getting Started – the ISR Salesperson and the Dealer 140
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

P age |6
Detailed Topic List
Call Outlines 224

Orientation Checklist 226
Documents for Your Use Under this Tab – Orientation 227
05-01: New ISR – Dealer Experienced 228
05-02: New Hire ISR Orientation & Training Document 229
05-03: Sample Questions for ISRs to Use 237
05-04: Call Outline – Initial Call to Customers (No Announcement) 238
05-05: Call Outline – Initial Call to Customers (Announcement) 239
05-06: Call Outline – Preventive Maintenance 240
05-07: Call Outline Template 241
05-08: Inside Sales Representative Departmental Observation Form 243
Resource Key – Orientation 246
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

P age |7
Detailed Topic List
Managing Checklist 288

Documents for Your Use under this Tab – Managing 289
07-01: Personal Business Plan 290
07-02: ISR Territory Plan 293
07-03: Sample Marketing Plan 294
07-04: Sample Marketing Collateral – Thompson Tractor 300
Resource Key - Managing 302
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

P age |8
Detailed Topic List
Adding ISRs
Executive Overview: About Adding ISRs 357
Frequently Asked Questions (FAQ)

FAQs 365
Document Guide 370

P age |9
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 guidebook is intended to be a workbook – it includes documents in each major

section that are designed for you to duplicate and use. As much as possible, real-life
Dealer examples are woven into the materials to assist you in starting or growing your
ISR initiative.
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

P age | 10
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.
 CRM – Need help selecting a customer relationship management (“CRM”) system?

See w hat’s working for other Dealers behind the Getting Started 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

P age | 11
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

P age | 12
TABS
Introduction
The Introduction introduces you to the contents of the Guidebook and how to use it.
ISR Business Case

The ISR Business Case provides information on building a business case to study the ISR
position in your Dealership. Included in this section are case studies from other Caterpillar
Dealers.
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.

P age | 13
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.
Like a w rench or a good pair of work clothes, this

Guidebook is intended to be used. The pages have a
space for your notes and comments and w e encourage
you to make the book your ow n!
Many of the documents found in the Guidebook w ere

designed to be copied. Please feel free to customize the
documents as needed for your Dealership.
At the beginning of the introduction is an

acknow ledgement of all the Dealer personnel w ho
contributed to this Guidebook. MPSD w elcomes your
comments and ideas for improvement – our job is to make
your job easier and w e appreciate your feedback.

P age | 14
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.
The Guidebook is arranged in chronological

implementation order – from the preparation of the
business case to growing your department. Most tabs of
the Guidebook include five basic sections:
 Executive Overview
 Background
 Checklist
 Documents
 Resources
The Executive Overview provides a quick orientation to

the section.
Background contains supporting material, as w ell as

benchmark experiences from Caterpillar Dealers w ho have
implemented the ISR concept.
Checklists are provided to assist you in managing the

projects necessary to implement the topic of the section.
Documents is comprised of forms and analysis tools. A

summary of all of the documents can be found behind the
FAQs tab.
And finally, Resources includes places to go for more

information on the section.

P age | 15
The Guidebook should be

used in conjunction w ith
support from your Caterpillar
District or Area office. Our goal
is to share the experiences
and best practices of the
Dealer netw ork.
Product Support NOTES

Inside Sales Summary
The Guidebook should be used in conjunction w ith support

from your Caterpillar District or Area office. Our goal is to
share the experiences and best practices of the Dealer
netw ork.
Your Dealership is faced w ith multiple challenges in

covering the product, parts, and service opportunities
available to you. Some Dealers have addressed this
challenge by creating a new sales role that provides cost-
effective coverage, increases customer satisfaction, and
improves revenue and profit results. That new sales role is
the Product Support Inside Sales Representative or ISR.
The ISR position is designed to be a cost-effective

alternative to traditional face-to-face coverage w ithin a
defined set of customers. The focus of the ISR is to
develop relationships w ith low -volume customers w ho may
have historically received little or no attention from the
Dealership. Proactive sales communications are
accomplished using the telephone and the Internet. They
center on nurturing ongoing relationships w ith assigned
customers and prospects to determine product and service
needs and provide the best Dealer solutions.

P age | 16
The primary approach is not telemarketing, nor is the

NOTES
purpose lead generation. The ISR is expected to engage
the customer in a sales dialogue – not in a scripted, one-
dimensional manner – and close sales.
A typical ISR w ill:
 Cover 800 to 1,200 accounts producing $2 million

to $3 million in annual revenues.
 Place 25 – 30 outbound calls per day to his/her

customer base.
 Handle inbound calls from assigned customers –

this w ill grow over time as the position is
established.
 Manage the overall Dealer/customer relationship to

better understand their customers’ equipment
needs.
 Provide Dealer solutions w ith a focus on current

promotions and sales, preventive maintenance
programs, and consumables.
A Product Support ISR functions in a way similar to that of

a PSSR. The major difference is mobility; the ISR
manages his or her territory and customer base from a
workstation w ithin the Dealership. The duties and
responsibilities of the ISR include:
 Selling parts and services to specified customers

who currently are not assigned to a PSSR or are
not being called on regularly by a PSSR.
 Contacting customers on a planned basis to

maintain customer contact and create aw areness of
new products, services, and total solutions.
 Understanding a customer’s current business

situation and machine population.
 Maintaining accurate customer equipment

information regarding preventive maintenance and
service needs.
 Discussing the uses and features of various parts

and service solutions.

P age | 17
The Sales Interview NOTES

Differences between a
PSSR and an ISR
Sales communication consists of body language, tone of

voice, and w ord choice.
Unlike the PSSR w ho works face-to-face with customers,

the ISR contacts customers over the telephone and,
therefore, is not able to take advantage of body language.
In addition, tone of voice is somew hat compromised by
telephony equipment. These limitations place a premium
on the ISR’s w ord choice and selling skills.
The typical telephone call is shorter than the average face-

to-face visit, so the ISR w ill talk to tw o to three times as
many customers per day as the PSSR.
Being located at the Dealership, an ISR must partner w ith

other Dealership personnel w hen customers require jobsite
services, such as undercarriage measurement. By
leveraging the expertise of their product support
colleagues, ISRs w ill be able to represent and promote all
solutions offered by the Dealer’s Parts and Service
Departments.

P age | 18
Differences between the ISR NOTES

and a Telemarketer
The ISR role is often confused with a telemarketer

because in appearance, the roles seem similar – both use
a telephone, a computer, and a customer relationship
management system, and neither travel extensively
outside the Dealership. There are, how ever, significant
differences:
 ISRs establish relationships; telemarketers are

driven by the transaction
 ISRs use open, non-scripted dialogue (similar to

PSSRs); telemarketers are often scripted
 ISRs problem solve for customers – product and

industry know ledge is required; telemar keters
transmit problems to others w ithin the Dealership
 ISRs strive to grow accounts over time – many

orders from ISR customers arrive via PartStore, the
parts counter, or the service department and can
be attributed to the ISR’s efforts to build the
relationship; telemarketers typically receive any
orders directly attributed to their efforts
Telemarketing has a role in Caterpillar Dealerships; many

Dealers have demonstrated success w ith this sales
platform. But, it is dramatically different than the ISR
position and is used to drive transactions, not relationships.
Why Relationships?

P age | 19
NOTES
Why is it important to build relationships w ith smaller

customers? Perhaps the easiest answ er is because they
may grow up to be large customers some day. Other
reasons include:
 Leads – ISRs uncover leads for new machines

because of their customer relationships. A typical
ISR may generate sufficient leads for the
Dealership to successfully close three or four
machine sales per year.
 Service Work – Many ISR customers are DIM

customers or use third-party mechanics. Once a
relationship is built, some ISR customers begin to
use the Dealer’s services.
 Promotions/Specials – If the ISR has built a good

relationship, customers are more receptive to
offers, specials, and promotions.
 CSAs – Customers more readily purchase and

renew Customer Support Agreements w ithin
proven business relationships.
On the next tw o pages is a simple survey you can use to

help you determine w hether the position you are
considering fits the ISR model or a telemarketing model.

P age | 20
Inside Sales Representative (ISR) Checklist Document 01-01
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
1   Does the salesperson have assigned accounts?
2   Does the customer consider the salesperson to be the primary point of

contact at the Dealer?
3   Do the customers assigned to the salesperson have one to six Caterpillar

machines?
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
6   Does the salesperson have freedom to plan calls within guidelines

established by the Dealer?
7   Does the salesperson establish a planned annual rate of call (PAR) with
customers from guidelines established by the Dealer?
8   Does the salesperson receive considerable training in product, sales, and

Dealer services?
9   Is the salesperson considered to be a natural candidate for outside sales

positions such as a PSSR or machine representative?
10   Does the salesperson generate leads for other salespeople within the
Dealership?
Yes No
Totals Page One

P age | 21
# Yes No Question
Salesperson Activities
11   Are the calls made by the salesperson “open dialogue” (unscripted)?
12   Does the salesperson typically make 20 or more telephone dials per

day to customers but less than 60?
13   Does the salesperson qualify accounts, determining whether ongoing

contact is beneficial to the Dealer and the customer?
14   Does the salesperson represent most or all of the product support

offerings of the Dealership – from undercarriage to lubrication?
15   Does the salesperson act as a problem solver for the customer,

engaging other members of the Dealership as needed to address a
customer need or concern?
The Salesperson
16   Does the Dealership carefully select these salespeople and are selling
skills a criterion?
17   Is the salesperson held accountable for revenue or revenue increase

from assigned accounts?
18   Does the salesperson have at-risk pay (compensation that is dependent

on performance)?
19   Is the number of accounts assigned the salesperson about 600 to 1,200

(after qualification)?
20   Does the salesperson report to a sales manager?
Yes No
Totals Page Tw o
Yes No
Totals of Pages One and Tw o
Analysis – Totals of Pages One and Two
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

P age | 22
Documents for Your Use

Included under this Tab
01-01 Inside Sales Representative ( ISR) Checklist

P age | 23
ISR Business Case
Executive Overview: NOTES
ISR Business Case
If you are considering an ISR position as a new sales role

for your Dealership, you probably want to create a
business case to support your investment in developing
and maintaining this channel. If you already have the ISR
position in your Dealership, you may w ish to calculate the
right number of ISRs to maximize your profitability.
This section of the

Guidebook is intended to
provide information for
either exercise.
The background information looks at market planning

(including coverage studies), provides guidance on PTOS
(“Product Tracking Opportunity System”) studies and the
recommended range for ISR activities, and presents case
studies from different Dealers to provide real-life
references. Finally, the background information addresses
assigning accounts to an ISR and coverage management.
The document section of the Business Case provides

some metrics you may use in establishing the ISR program
and the business case.
Additional information on creating a business case can be

found in the Resources portion of this tab.
This tab concludes w ith a sample business plan.

P age | 24
The Market Opportunity NOTES
Four Key Components

A critical component in the implementation of any new
sales role, such as the ISR position, is a marketing plan. A
thorough marketing plan has four key components:
 Creation of a market snapshot
 Targeting of grow th opportunities
 Action planning and follow -up
 Results tracking to deter mine next steps
The graphic on this page provides an illustration of this

concept.
Customer segmentation is a key part of the targeting

process and enables a discussion of the appropriate
coverage for the Dealer.
In this section the Guidebook w ill present the use of PTOS

and coverage studies to assist you in building a business
case for the ISR position or deter mining the correct
number of ISRs to deploy.
For most Dealers the ISR business case begins w ith a

coverage study.

P age | 25
Sales Coverage NOTES

PTOS Opportunity
Dealers w ho have implemented the ISR concept have
found it to be a cost-effective coverage model that has
exceeded parts and service revenue growth expectations
for small and medium-sized customers. The Product
Support Coverage Model show n on this page illustrates
how the Inside Sales Representative role is positioned in
relationship to the other sales roles available to the
Dealership.

P age | 26
As the graphic on the previous page illustrates, PTOS is a NOTES

key part of successful marketing plan. In addition, a
coverage study based on PTOS opportunity data w ill help
the Dealer develop the staffing and deploy ment action plan
required to effectively deploy an inside sales function.
Using PTOS, Dealers can identify each customer’s current

and future opportunity and begin to target high-opportunity
customers and implement effective coverage strategies.
PTOS gives a Dealer much of the information needed to
get an idea of w here the Dealership is currently making
sales – and w here it is not. It can show you w hat
Dealer/Customer Acceptance Level (“DCAL”) you currently
have, where opportunity exists, and areas where you have
lost opportunity.
PTOS provides sales opportunity, equipment data and

DCAL information to Dealers. It has the ability to track and
report on products and customers by age, location, family,
and industry. As a part of the market planning process,
PTOS allow s you to identify opportunity, w hich becomes
the basis for decisions regarding sales coverage, capital
expenditure planning, your annual planning process, and
sales incentives.
PTOS is simply a business management tool to help

identify parts and service sales opportunity. It’s the only
tool available to actually quantify your total opportunity.
When implementing an inside sales function, PTOS can
provide the opportunity data for customers with a specif ied
number of machines, thus providing potential revenue
justification for establishing the position.
Several thoughts concerning the application and use of

PTOS opportunity information:
 PTOS is not an exact measurement tool in that

it takes a snapshot of Dealership opportunity at
one point in time. Since the business is
dynamic, PTOS w ill never have 100% accurate
equipment population.
 PTOS relies on how current Dealer data is in

the Dealer Business System (“DBS”); therefore,
it is not a true trending tool. There w ill be
variations in equipment population from month
to month.

P age | 27
 PTOS does not calculate opportunity or DCAL NOTES

for non-Caterpillar equipment or indicate how
the competitive environment may impact future
sales. You w ill note in the Dealer case studies
found at the end of the Background section of
this tab that some Dealers look for Nexus
opportunities w ith their ISRs (non-Caterpillar
machines).
 Sales decisions should not be made solely on

the data in PTOS. The Dealer’s ow n customer
know ledge, industry know ledge, and regulatory
know ledge should be combined w ith the
information available from PTOS in making
marketing and coverage decisions.
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:
 Identifies Dealer parts and service opportunity

and optimum number of ISRs and PSSRs
required to realize the opportunity.
 Establishes a “barometer” for the Dealership to

help deter mine w hat is happening in its territory.
 Gives the Product Support Sales Manager the

information to coach ISRs and PSSRs to
manage their territories more efficiently and
effectively.
 Identifies data inaccuracies w ithin DBS.
Effective Dealer coverage studies consider the entire sales

force structure in order to deter mine the most effective and
affordable coverage model for the entire Dealership.
The coverage study utilizes a Six Sigma approach to

effectively drive from project definition to action planning
and measurement.

P age | 28
The recommendations given by the Six Sigma team w ill NOTES

be shared w ith the Dealership and an action plan for
implementation w ill be established. The Caterpillar
representatives (from the Six Sigma team) w ill w ork w ith
the Dealer to facilitate the recommendations and ensure
that financial targets are attained.
The overall process to implement a coverage study along

with a typical timeline to implement is outlined on the next
page.
This coverage study service is provided by Caterpillar to

improve sales coverage at your Dealership. For more
information on conducting a coverage study, contact your
District or Area office.
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.

P age | 29

P age | 30
Dealer Case Studies

To further assist you in preparing your business case, this Guide includes 11 global Dealer case
studies that provide facts and figures from other Caterpillar Dealers and their implementation of
ISR positions – both machine and pow er systems.
Case Marketing
Study Dealer Location Organization
1 Finning Canada Edmonton, Alberta, Canada NACD
2 Whayne Supply Louisville, Kentucky, USA NACD
3 Michigan Cat Detroit, Michigan, USA NACD
4 Thompson Birmingham, Alabama, USA

Tractor NACD
5 Finning U.K. Cannock, United Kingdom EAME
6 Mantrac Egypt Alexandria, Egypt EAME
7 Finning SA Santiago, Chile LACD
8 Lei Shing Hong

Machinery Ltd Shanghai, China APD
9 ECI-Metro China APD
10 CEL Hong Kong, China APD
11 Wes Trac China China APD
In 2008 four global Dealer exchanges w ere held:
January LACD Panama City, Panama

April APD Shanghai, China
April APD Melbourne, Australia
June EA ME Geneva, Sw itzerland
Some of the case studies w ere presented at these Dealer Exchanges as noted.

P age | 31
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.
This Dealer calculated the cost of a completed call as

$21.06 vs. $255.00 for a field sales call.
Out of the original list, 15% – 30% of the accounts were

disqualified in the initial conversation.
Today, the Dealer has 16 ISRs w orking 15,000 accounts

that are generating $30 to $40 million in sales annually.
This Dealer hires salespeople w ith a post-secondary

education, telephone or parts sales experience, 2 years
sales experience, and database marketing skills. The
screening process consists of resume grading, a telephone
interview , a personal interview , and a job shadow . For this
Dealer, 70 resumes yield 30 telephone interviews, 8
personal interviews, and 1 hire. The initial training lasts 6
to 8 w eeks. Since 2001, 18 of this Dealer’s ISRs have
transitioned to other positions at the Dealership.
For an established ISR, 5 days per quarter are set aside

for travel in the field. ISRs are required to make 300 phone
calls per month. Historically, they have achieved greater
than 24% revenue grow th.

P age | 32
Case Study 2: Whayne Supply NOTES
Louisville, Kentucky, USA

Joe Yonce, Sales Manager
This Dealer, w ho serves a large geographic territory,

began w ith a coverage study in 2004 and found it w as not
calling on smaller customers. ISRs w ere introduced both
as a coverage model and as succession planning for
retiring PSSRs. Tw o ISRs w ere hired to handle 2,287
customers.
The PSSRs at this Dealership kept their existing territories

with the ISRs sharing joint responsibility. The PSSRs and
ISRs are encouraged to w ork together.
When the accounts assigned to the ISRs w ere profiled, this

Dealership found tw o-thirds of the machines w ere non-Cat,
38% w ere in the excavation business, 22% in snow
removal, 11% in forestry, 8% in landscaping, and 8% in
agriculture. The term “small customer” w as deceiving –
some customers ow ned only 1 Caterpillar machine but had
20 machines overall.
This Dealer feels the personality traits (the attributes of the

salesperson) are key. It is this Dealer’s opinion that not all
good PSSRs make good ISRs, but all good ISRs make
good PSSRs.
At first the ISRs at this Dealership reported to the branch

managers, but it is now looking to centralize to build team
cohesiveness because of the opportunity to “feed off of
one another.” This Dealer is thinking of adding additional
ISRs in the near future; it is considering an ISR exclusively
for the CCE market.
The ISRs make 20 – 30 calls per day and w ere initially

introduced to their customers through a mailing. They
found that 10% – 15% of the accounts were out of
business or were never really in business to begin w ith.
As the program builds, the ISRs are beginning to receive

inbound calls. In the first six months, they reported an
increase in sales of $615,710 – a grow th of 47% from
these accounts as opposed to an 8% growth in regular
business.

P age | 33
Case Study 3: Michigan Cat NOTES
Detroit, Michigan, USA

Mike Lazzara, Product Support Sales Manager
Michigan Cat began their ISR initiative w ith a coverage

study in 2007 and then mapped out the ISR position
internally. The ISR initiative kicked off in the w inter of 2008.
By year end they had three ISRs in place – one calling on
pow er systems accounts, tw o on machine accounts.
By mid-December 2008 the tw o ISRs w ho were in place

since March (8½months) had sold over $1,000,000 and
contacted 300 customers. On this page and the next are
graphics of their efforts to date.
Note: In all graphs, December 2008 data is until mid- month

only.

P age | 34

P age | 35
Case Study 4: Thompson Tractor NOTES
Birmingham, Alabama, USA

From the Inside Sales Representative
(ISR) Conference
* Panama City, Panama
January 28 – 30, 2008
Tom Chiles, Sales Manager

Jimm y Sm allw ood, ISR
Tom has been at Cat Dealers for 22 years – with

Thompson 4 years
Thompson started in 1957 – 39 counties in north Alabama
Very diverse territory – marine opportunities along the

coast
Large truck engine group
3 years ago Tom w as at an idea exchange just like this in

Peoria
Began w ith a coverage study – learned they w ere not

doing an effective job
5,000 small customers – are they getting support?
Thompson had a goal of being a $1 billion-dollar Dealer by

2011
They use Salesforce.com as their CRM – interfaces w ith

DBS

P age | 36
CCE – mini-excavator, skid steer, etc. – landscape, NOTES

sw imming pools
Different segment at Thompson – “ow ned” by Cat Rental

Store. Would like to add an ISR for this
Jimmy Smallw ood (ISR) test-called CCE customers and

had fair success – grew $50K to $60K in a six month
period and turned around some unhappy customers
For an ISR, have to be clear w hat you w ant –

Clerk? (No)
Counter sales? ( No)
Sales – Yes
Question: Tom, hypothetically – w hich would you choose?

• Limited aptitude for the job; high product know ledge
• Great aptitude for the job; no product know ledge
Tom: I’d select great aptitude every time
“We can give them an injection of yellow blood!” – Tom
Training – getting started making calls

• They have designed a program w here they train ½
day and call ½ day
• Communicating w ith the team at the Dealership –
critically important!
• Where I stumbled at first – Machine Sales
Representatives – need to communicate w ith them
• Tom w ent to all branches and introduced Jimmy
Smallw ood (ISR)
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
Look at this segment of 2,235 small ow ners:

• 2,954 machines
• 504 of these customers were not assigned to a
PSSR
• $938,641 total parts and service sales per
customer
• Average sales per customer = $420.00
Question: Does Jimmy Smallw ood (ISR) call on engine

accounts?

P age | 37
NOTES
Tom: No, but Jimmy has some customers that do both.
2,235 small ow ners: $8 million in PTOS parts opportunity
Tom used an Excel spreadsheet to prove the business

case
Profit after direct (estimated): 15% Parts/26% Service

Parts - ⅔ of ISR sales
Service - ⅓ of ISR sales
Question: // to group // “Who has the data to do this?”
Answer: // almost everyone in the group said yes //
Steve Moreira. – We w ill w ork w ith you to generate the

kind of metrics you need to get on track
For call preparation, I look at the PIPs ( Product

Improvement Programs)
Customer should view the ISR as a “problem solver”
PA R ( Planned Annual Rate)  Call customers 1 time a

month to 2 or 3 times a year
Jimmy has customers that have field service come out to

change teeth on a 416 backhoe bucket
Question: How much time do you take for relationship

issues - problem solving, invoices, etc?
Jimmy: Maybe only an hour a w eek.
Tom: Jimmy has a base salary plus commission; base is

for “support issues”, not transactions.
Jimmy: When a customer needs something, I w ant him to

think of me most.
Question: We have a goal at our Dealership of 44% parts

through the shop. How does that work for you? We find
service opportunities are different for the small-time
customer.
Tom: I’m surprised by w hat Jimmy has brought in. We have

established no goal to date on this question of service vs.
parts –

P age | 38
Question: Do you have figures on the split of parts and NOTES

service before and w hat it is now ? In other w ords, has
Jimmy changed the split betw een the tw o?
Tom: No, I don’t have any data on this; w e could look at

this, but I haven’t yet. I know we’ve grown his territory $1
million dollars.
Question: What feedback have you received from other

divisions (rental, equipment sales)? How does he know
about their marketing campaigns?
Jimmy: I get good feedback from them, especially w hen I

pass along leads (laughter). I’ll follow up w ith both the
customer and the salesperson; I’ll make sure someone
contacted them.
Tom: We have some mixed results. Divisions are happy

with the leads, but sometimes resent Jimmy’s follow up.
Jimmy is like a bird dog and he stays on the trail until he
gets results – persistent – sometimes internally they don’t
appreciate it.
Sometimes he uncovers “sins” the division doesn’t w ant

others to know about.
Question: Commission on parts – besides w hat he

generates – opportunities for other areas – what
percentage does he get?
Tom: I’ll address this after lunch.
Question: Do you receive feedback from the PM activities?
Jimmy: Yes, we do inspections on every PM w e do. I’ll call

the customer and follow up on the PM. I get a lot of service
work by saying “Did you see this here on the report?”
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.
Question: Does this help in CSA renew al?
Jimmy: Yes, when they see we are identifying problems. I’ll

also review oil sample results w ith them – too much metal,
etc. This provides better product support

P age | 39
Question: Sometimes there is a comment that w hen w e NOTES

touch a machine the price explodes; how do you handle
that question?
Jimmy: I prioritize w ith the customer: this needs to be fixed

right aw ay, this may be pushed back to later. I don’t just
point out the problem; I provide options to the customer
and let him/her decide.
Customers love options!
No tw o customers look at the problem the same w ay –

whatever options we have – turn it from a yes/no decision
to choices.
Question: How do you include the ISR in advertising

campaigns?
Jimmy: We don’t do that many.
Tom: We don’t track the sales results specifically for each

promotion; most are geared tow ards large customers.
Question: It seems to me that the first call the ISR makes

is complex. How can the ISR deter mine w hat kind of
customer it is?
Jimmy: I do research before I call; look at the service w ork

orders, if any; look and see if he’s doing repairs himself or
maybe through a competitor.
Question: How do you leverage the Internet? Parts store?
Tom: We developed our ow n site. We aren’t good at e-

business yet; have a few customers who use Parts Store.
We are just beginning to monitor and track.
Steve M: Customers today “channel hop”; use the Internet

to learn and then w hen they are ready to purchase, they
go to the ISR or the counter; “Look at the Internet as a
service”
Question: Do you segment by DIM, DIFM, and WWM

before the call?
Jimmy: I don’t look further in PTOS; I look at invoice

history.

P age | 40
Tom: Hard to look at PTOS – know ledge and relationship NOTES

with each customer – can get an idea early – build
relationship – A ND ASK!
Question: We have lived this, in practice – the ISR needs

to invest a lot of time fixing problems; this has made us use
the contact center; similar to w hat some other Dealers
have – ISR spends a lot of time solving problems – he
needs to invest a lot of time in this. I understand that you
feel he might lose part of the service of being a point of
contact – client service w ill take care of the details that
aren’t related to sales.
Tom: We look at it that now he (the ISR) can take care of

it.
Jimmy: I like the problems because I’m seen as a

resource.
Dealer Comment: The “ PSSR back office” concept of the

ISR has not w orked –the ISR needs to ow n the entire
relationship including sales. This is w orking. Don’t
outsource PSSR problems to the ISR; the ISR needs to
ow n the small customers.
Jimmy: Relationships are the bed rock.
Question: How do you keep track of who to call?
Jimmy: I use Salesforce.com. It shows who I should call

that day – opportunities and leads – I put my notes in it.
A CRM is needed to keep up w ith customers.
“Airing of grievances” is important – they then grow into

bigger customers – w e have lost customers just over an
invoicing problem.
Question: Do other people in the organization use

Salesforce.com?
Jimmy: Yes, machine salespeople, PSSRs, me – all on

Salesforce.com – the sales team. I can see all the contacts
– allow s us to coordinate our approach. Engine etc. is also
show n.
Perceptions w e need to change:

• “Thompson alw ays is about the big customer”
• “I haven’t heard from Thompson since I bought this
tractor”

P age | 41
• “Can I call you w ith all the issues I have?” NOTES

• “I didn’t know who my PSSR or machine rep is”
FAQs (Frequently Asked Questions):

• “Where are you calling from?”
• “Why are you calling?”
• “Will I get the same service as the big customers?”
• “What is your role w ith the company?”
• “What service and product can you provide?”
A lot of customers don’t know about Reman or S•O• S.
When asked, “Are you replacing my PSSR?” it’s okay to

say you don’t know .
Training –
Parts Product Conference in Peoria
Telephone Sales w ith John Dieseth at Whayne Supply – in

the log cabin
Parts Pro – w ent through this at the counter

– I couldn’t do my job w ithout it
Recommend for anyone!
PSSR Update – 20 to 30 ISRs w ere at this Parts Product

Conference – “You are your customer’s PSSR”
In-house technical training – basic electronics, engine

hydraulics
Jimmy: “You are never finished training.”
Mark Wankel, Caterpillar, Peoria - We have a curriculum

on the Cat w ebsite – “Sales Effectiveness.”
Question: How much do you train, Jimmy?
Jimmy: When I started, all the time; now , 80 hours/year.
Question: Is your visit to the branch considered training?
Jimmy: No, just actual training events.
Question: Have you received sales training?

P age | 42
Jimmy: Yes, audio CDs and the Inter mediate Training at

Whayne Supply. NOTES
Business Goals – “Learn to be a good listener”, “establish

relationships”, “grow parts and service business by 25%”
Jimmy: I w ant the customer to know that we’ll get Komatsu

parts and w e’ll change oil in his/her Komatsu.
Best w ay to solve a problem is to give options
D6 – w orn out New engine
Used engine
Thompson rebuild
I give the customer every option I have available – turns “if

I’ll buy”into“w hat I w ill buy”
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.
Question: Iw ent to another presentation and I thought they

said the skill set is different betw een a PSSR and an ISR.
Jimmy: Different on a case-by-case basis only – 95% of

my job is the same as the PSSR. I w ouldn’t recommend
putting someone in an ISR role that couldn’t do a PSSR’s
job.
Mark W: Many Dealers see the ISR as a transitional role.

Many ISRs move into the PSSR role – if you can do this
over the phone, you can do it face-to-face.
Many ISRs do very w ell in their next job at the dealership.
Question: Is this ISR role an entry-level position?
Yes – an example w as given: Finning Canada
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).
Also had a customer’s 416 break in half – service letter

expired – w orked w ith Cat – w ent the extra mile for the
customer

P age | 43
NOTES
Sales of non-Cat items – Komatsu Parts
Machine Sales and Rentals – Just before w e came dow n,

we closed on a 330 excavator.
Special projects – Sales blitz, hydraulics marketing

programs, lead follow-up, GET specials, NEXUS
undercarriage, etc.
Compensation:
Base – levels out peaks/valleys, non-sales related

issues
Commission – parts, service, CSA sales, finder’s

fees for equipment sales and rentals
“Let’s bring your tractor into the shop” – w e want the

service business.
Every w eek he has a PM going on – gets commission for

that.
If Jimmy enters the opportunity into the CRM first, he gets

a finder’s fee.
Machine Rep needs to enter his/her leads
Jimmy: Customer called me about a 420 backhoe and I

called the Machine Rep. He said, “ Why is he calling you?”
and I said, “Why do you care!?”
Question: Does he get compensation for new business?
Tom: Same flat rate.
Question: Does he have sales goals?
Tom: YES – total number for the year.
Question: Tell me about ISR vs. PSSR compensation.
Tom: ISR is slightly less – some PSSRs make less than

Jimmy.

P age | 44
Avoid burnout: NOTES

• Ride w ith PSSRs
• Attend branch meetings locally ( monthly)
• Weekly PSSR meetings
Projects:
• NEXUS GET
• Rental store experiment
• Sales blitz reinforced
On-going training
Recognizing accomplishments
Finning Chile – We do a lot of employee activities after

work w ith the sales team
Thompson – We include the ISR in all PSSR meetings and

events
Weekly reports –
• Call activity
• Deals w on/lost
• Issues
• Sales leads
Monthly sales reports –

• Current year vs. prior year
• Quarterly review
Annual database clean-up
ISR career development –

• Develops skills
• Learn time management
• Learn how to research customer needs
• Product know ledge
• 5,000 customer contacts/year
• ISRs understand customer needs
• ISR deals w ith a vast market
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%)
Up $ 528,000 the first year

P age | 45
Machines sold from ISR leads: NOTES

• 2-ea 420 backhoes
• 1-ea 320 excavator
• 1-ea TH103 telehandler
Rental division – numerous
Satisfied customers
Question: Is that 49% all Jimmy?
Tom: Yes, PSSRs not contacting them. Plus, of course, he

just closed that 330 excavator.
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

P age | 46
Case Study 5 - Finning U.K. NOTES
Cannock, United Kingdom

From the Inside Sales
Representative (ISR) Conference
* June 23 – 24, 2008
Geneva, Switzerland
Tania Tam s, Inside Sales Manager
Do w e serve all our customers to the best of our ability?
 ANSWER: We are serving customers to the best of

our ability; product support salesmen are w orking at
110% and w e are continually developing better
ways to add value to our customer‘s business.
– But it is not enough.
 Our PSSR‘s are w orking at maximum
 Small spend customers could have potential to

grow
 Many customers do not understand our full offering

and differentiation
 Big machine company, Big players

P age | 47
NOTES
What w ere m y initial challenges?
Previous Inside Sales Group failed:

 Machine Lead focused
 Seeking new customers/not supporting
existing ones
 No product support focus
 Poor interaction w ith the sales team/regions
 Internal competition rather than team w ork
 Volume call approach
 Poor leadership – selling machines, selling
anything …
The new team w ill be quality call not volume call approach
and w ill be focused in building relationships for product
support.
Telesales and Lead Generation
 Need from the business for machine leads

 Need for support for marketing initiatives
 Need to provide appointments for machine
salesmen
 Need for volume calling to cover our
database
 Need for our 10,000 prospects to be
contacted
Calling customers/prospects for strictly lead generation

does not w ork for us. Customers w ant support, not
someone chasing them for machine opportunities.
Telesales agencies have the same results
Marketing campaigns w ill give us a reason to call

P age | 48
Regional vs. Central Approach NOTES
 “They need to be Welsh if they are calling Welsh

customers”
 “If they are calling our customers, they should sit in our
region”
 “If they are centralized, they w on’t integrate w ith our
team effectively”
We already have regions w ho have tried the regional ISR

approach – their ISRs end up manning the parts counter, doing
systemw ork, admin for salesmen … anything but making that
call.
They don’t have to be Welsh – they simply need to be the

support for their customer.
Separation of accounts
 PSSRs concerned they w ouldn’t have enough accounts

 Worried w e would take their best customers
 Worried it w ould affect their ow n commission
 How would they w ork together
Educated team and presented in person to all regions to sell-in

the concept.
Explained this w as about the customers they don’t have time to

talk to.
Dem onstrated that we w ould be w orking closely w ith them

through days out, sales meetings and shows, etc.
Other
 Office space and location

 Computer accesses
 Assigning ISR to accounts
 Parts counter interaction
Office location w ithin the main office but still separate.
Accesses – ISRs w ere given the same accesses as the product

support representatives and accounts are being assigned as w e
speak – manually.
A form has been created w hich helps the ISR w ork w ith
Parts Counters more effectively.

P age | 49
What approach did we decide to take?
Structure
Inside Sales

P age | 50
How did we allocate accounts to the ISR?
Accounts Spending under 4k
£400,000
£350,000
£300,000
£250,000
£200,000
£150,000
£100,000
£50,000
£-
2003 2004 2005 2006 2007
Parts Service
Inside Sales NOTES

£23 for ISR to call on customer
£192 for PSSR to call on customer
Cat coverage studies show ed that £2,250 is the break

even – a customer must be spending more than this to
warrant a PSSR calling on them.
We split accounts at £2,000 – all accounts spending less

than £2,000 have been re-assigned to an ISR.
(Review able in 6 months.)
PSSR Input
In order to m aintain good working relationships:
 PSSRs review ed our account list in case there

were specific customers they had a good reason to
keep.
 PSSRs w ere also handed over some higher spend
customers that they know they still do not have time
to call on.
 PSSRs w ere made aw are that if an account grows to
a level w here a PSSR w ould be more appropriate, the
account w ill be migrated back (estimated at 6
machines or more and regular P&S spend).

P age | 51
How w ill ISRs w ork w ith our teams?
Relationships
5 days per month, ISRs w ill have an

opportunity to interact w ith their region
 Sales meetings
 Regional show s
 Customer trips
 Job shadow ing
 Further training
Accounts w ill migrate back to PSSRs if they develop into

large spend. NOTES
PSSRs can draw from support of their ISR if required.
ISRs w ill aim to have close w orking relationships w ith their

regions.
Recruitment and Training?
Recruitment
Follow ed the Caterpillar Recruitment guide closely:

 75 CVs received
 35 Telephone interviews
 12 Face-to-Face interview s – Using Cat
Recruitment Guide questioning and scoring
system
In second interview , I used:

 Prioritization tests
 Psychometr ic tests
 Open questioning
Training
 7 w eek training program prior to picking u

telephone Training for ISR’s FINAL.xls
 High-Impact Sales Training (John Dieseth) 2

months into role
 Opportunity for job shadow ing
 Quarterly best practice and development targets
 Long-term action planning after 12 months for next

role

P age | 52
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
Reverse the decline

4000
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
What growth do we expect?

P age | 53
Targets/Comm ission NOTES

Commission payments w ill be paid monthly on revenue
grow th (100K).
Commission payments w ill also be made on reaching

quarterly best practice targets.
Best Practice Targets will include things such as:
 Complete call targets

 Generate 10 opportunities
 Sell in local promotion to 4 new
customers
 Target 4 customers for parts and service
growth
One-off payments w ill be made for machine leads w hich

convert to a sale.
One-off payments for CSA contracts.
Costs

P age | 54
Call Outline
1. ISR contacts prospect or customer as Finning Product Support Rep – No direct sell.
2. Through conversation, they seek out P&S or machine opportunities.
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.
5. If it is a machine lead, opportunity is passed to a Machine salesman – w ith ISR taking

ow nership for the sale and checking on progress.

P age | 55
Contract Strategy NOTES

Heavy Construction
General Construction
General Construction
Contact Strategy – July 2008 – Dec 2008
Mon, Tues, Wed:
600 average GC accounts/57 w orking days

= 11 calls per day
500 GC prospects/57 w orking days

= 9 calls per day
600 customers less attrition rate (25%) = 450 customers

wanting return call over the next 6 months/57 w orking days
= 8 calls per day
Total: 28 calls per day m inimum

 4 calls per hour (allow ing for 1 hour lunch/admin)
Heavy Construction
Contact Strategy – July 2008 – Dec 2008
Thurs, Friday:
460 average HC accounts/37 w orking days

= 13 calls per day m inim um
500 HC prospects/35 w orking days

= 14 calls per day
460 customers less attrition rate (25%) = 345 customers

wanting return call over the next 6 months/57 w orking days
= 9 calls per day
Total: 36 calls per day

 5 calls per hour (allow ing for 1 hour lunch/admin)

P age | 56
Contact Strategy – January 2009 Onw ards NOTES

All accounts w ill be proactively managed regardless of HC or
GC division.
We w ill be considering w hether w e need additional ISRs to

cover the accounts.
We w ill be considering utilizing ISR for specif ic focuses in the

business such as Hew den Hire/Pow er Systems.
Where are we now ?
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%
Weekly competitions to test their know ledge gained so far
Trial days/Job shadow ing w ith PSSRs completed
Prospect calling day to develop confidence …
Prospect Call Results
 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
22% conversion rate VS 1.2% for telesales agency approach
Inside Sales Mission Statement
Our Team Mission Statement
“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.”
Written by ISR team, 29th May 2008

P age | 57
Case Study 6 - Mantrac Egypt NOTES

Alexandria, Egypt
From the Inside Sales Representative
(ISR) Conference
* June 23 – 24, 2008
Geneva, Switzerland
Agenda
 Mantrac Egypt Overview

 Coverage Study
 Getting Started
 ISR Training
 ISR Onboard
 Solution & Offers
 Performance metrics
 Program Outcomes
 Challenges
 Next Step
Nabel Nassim , Sales Manager

P age | 58
Coverage Study NOTES

Coverage study is one of the most vital projects w ith CAT
as its aim is to improve our efficiency through determining
optimum number of PSSRs and ISRs that lead to catch
further opportunities, improve our sales & DCAL, and bring
out better results.
How did we start?
 There is a data template (spreadsheet) that w as

sent to us that w e completed and sent back to CAT
coverage consultants; it included a lot of data:
number of PSSRs and customers
 Classified the customers according to size,
opportunity, sales area, and activity
 Broke dow n the PSSR’s time to know the total time
spent in sales
 Calculated the average expenses per PSSR
annually and per call
 Identified the number of calls (face-to-face) for each
customer
 Calculated the breakeven point of PSSR
 Calculated the breakeven point of ISR
 Deter mined the number of ISRs needed to cover
the small customers below and about breakeven
point
Customers

P age | 59
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
Coverage Study Outcome NOTES

Senior management, MD, and Product Support Director
were invited to attend the executive summary to know the
benefit of coverage study and they found:
 The coverage study determined opportunity;

optimum number of PSSRs for our territory.
 The coverage study also helped in
identifying data inaccuracies w ithin our
business system.
 The coverage study helped in reassigning
customers related by customer size, activity,
and geography. Move tow ards a more
balanced customer list for PSSR’s.
 The coverage study determined the number
of ISRs needed.
The Board of Directors agreed to assign ISR to cover small

customers below breakeven.

P age | 60
Getting Started

P age | 61
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
ISR Training – Topics & Delivery

P age | 62
ISR Training – Topics

P age | 63
Inside Sales Rep Onboard NOTES

Contacting Customers & Qualifying Phase
Contacting Customers:
 ISR built a good relationship w ith other

PSSRs, Counter men, and Service Team to
support him in contacting customers
 He used a 3-call approach
 ISR offers gifts (small souvenirs) from the
dealer to customers to rebuild the
relationship betw een them and Mantrac:
caps, free S•O•S, calendars, etc.
Qualifying Phase:
 Assigned to 665 accounts. These

customers span all industry types:
agriculture, heavy construction, compact
construction, pow er systems, and oil & gas
 Conduct 25 to 30 outbound calls per day
 After completing the first round of Coverage
for this list, he found that :
o 150 w ere out of business
o We have 515 Active Customers

P age | 64
Basically his role is the same objective as the PSSR NOTES

Touching these customers a minimum of 6 times per year …
 To meet their needs

 Provide solutions
 Make the sale
 Deliver value to the customer
 Re-establish and create an ongoing relationship
with low er volume customers
 Handle inbound calls as necessary
 Manage the overall Dealer/Customer relationship
 Dedicate one day per w eek for personal
development

P age | 65
Solutions & Offers
Solutions & Offers

P age | 66
Performance Metrics
2008 YTD Sales

$265,000.00
$235,000.00
$205,000.00
$175,000.00
Axis Title
$145,000.00
$115,000.00
$85,000.00 32 Sales 2008
$55,000.00
% FCST
$25,000.00
-$5,000.00

P age | 67
Sales & Commodity Contribution
Undercarriage Undercarriage
PSSRs Engine
ISR Engine
Ground Engaging Ground Engaging

Tools Tools
Drive Train and Drive Train and
Steering Steering
Hydraulic Hydraulic
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%

P age | 68
ISR Program Outcome NOTES

Helped us to identify and address:
 Enhancement opportunities for the
relationship betw een us and the customers.
As a result of intensive follow up, we
signed 12 CSA, 3 R/O, etc.
 The target customer’s business priorities –
reduce dow ntime
 Voice of the customer – “Development and
delivery of solutions”
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.”

P age | 69
Next Step

P age | 70
Case Study 7: Finning South America NOTES

Santiago, Chile
* June 23 – 24, 2008
Geneva, Switzerland
Sven Krarup, Sales Manager

P age | 71
FinningSouth America
Our Product Support Challenge ´06 - ´11

Product Support Revenue
(US$ M - 2006) Mining
P ower
C&F
Year DCAL Year DCAL
2006 25% 2006 90%
2011 60% 2011 95%
55
- Heavy Construction - Mining
- General Construction
328
- Forestry
- Power Systems
30
end of 2006
“Customer Support Center”

•ISR
•etc

P age | 72

P age | 73

P age | 74

P age | 75
Case Study 8: Lei Shing Hong NOTES
Machinery Ltd
* April 8 – 9, 2008
Shanghai, China
Wu Ben
LSHM, Customer Service Division Manager
Current ISR Process at LSHM
- 11,455 machines and engines
- 90% HEX customers are small
- 33 service centers, 24 branches, 8 Cat Rental Stores
- 84 CSRs ( PSSRs) average 2.7 face-to-face calls/day
- CSRs reach 55% of total DCAL, 33% of HEX DCAL
- Breakeven on a CSR customer is 3,000 RMB
- For our ISRs, only the HEX customer is called, not the
stand-by generators – 895 all HEX customers
- Call average for our ISRs, 12 calls/day

P age | 76
- 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
 Introduction of merchandising programs and

service product
o Exchange
o CSA
o Flat rate
- Feedback from customers

 Quality of machine
 High price
 Don’t know w ho can help
 Slow speed of trouble shooting
- Motivation – incentive on sales target, CSR gets

commission also
- Challenges:
 ISR training
o Technical and product know ledge
o Selling skills
o Time management
 Internal communication
- Future plans
 1 ISR for every area (total of 8 ISRs)
 New ISR training
 Incentive programs

P age | 77
Case Study 9: ECI-Metro

* April 8 – 9, 2008
Shanghai, China
Li Kun
ECI-M, Parts Marketing Manager
Challenges in Deploying ISR NOTES
- Wide territory w ith a poor transportation system
- CSRs – We have 27 ( PSSRs in NACD)
- 94.8% are small customers, 52.3% of customers bought

less than 5,000 RMB
- Lack of CSR experience, high pressure on parts PA D
- ISR … 10 calls/day, assist the PSSR w ith documentation,

etc.
Company 06 DCAL 07 DCAL 07 PAD
Yunnan 36% 42% + 2.8%

Guizhou 37% 39% + 0.7%
Sichuan 37% 42% + 3.2%
- Challenges for us w ith ISR deploy ment
 Training
 Management process
 Attitude/discipline
 Inhospitality from PSSR
 Branch interference

P age | 78
Case Study 10: CEL NOTES

* April 8 – 9, 2008
Shanghai, China
Cyril Po
CEL, Parts Marketing Manager
Challenges in Deploying ISR
- Hurdles anticipated in executing on the ISR concept:
 Customer data integrity

 Customers might not be eager to share
information on the phone
 Difficult to recruit appropriate staff w ith relevant
experience and know ledge
 Training
o Qualification certification
o For mal classroom training
= TTD List of skill requirements – product, sales,

customer – required for an ISR
= TTD Instructors in local language

P age | 79
Case Study 11: Wes Trac China

* April 8 – 9, 2008
Shanghai, China
Yin Rui
WTC, Tech. and Marketing Manager
Challenges in Deploying ISR NOTES
- ISR Development challenges:
 ISR know ledge requirements
 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?
- How to coordinate and follow up
- What are the job responsibilities?
- How to assign customers
- ISR performance tracking

 Sales
 Follow up after the sale
- ISR sales commissions
- ISR career development
= TTD Guidance on how to communicate to the

service department, etc.

P age | 80
ISR Business Case Worksheet
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.

P age | 81
ISR Business Case Worksheet

Document 02-01
Line Description Calculation
Revenue
1 Accounts from PTOS coverage study
2 Less: Attr ition during pre-qualification 30%
3 Multiply: Line 1 by line 2

Accounts that will attrite
4 Subtract: Line 3 from line 1

Projected accounts maintained by
the ISR (maximum of 800 per ISR)
5 Projected revenue gain per account

(Dealer experience is $ 300 to
$ 1,000 annually per qualified account)

Increase in product support revenue
Expenses
7 Gross margin on sales to this

segment (historical) (Percent)

Gross margin from ISR projected
activity
9 ISR Payroll expense
10 ISR Payroll burden (workmen's comp,

unemployment, social security, etc.)
11 Office burden (rent, utilities, office

space, telephone, etc.)
12 Direct support expenses (training,

travel, etc.)
13 Supervision burden (allocation of

sales management costs)
14 Total Costs
15 Annual Gross Profit: Line 8 less line 14

P age | 82
ISR Business Case Worksheet Explanation

Document 02-01
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.).
04 After pre-qualification an ISR can w ork 600 to 800 accounts.
05 This estimate is based upon the experience of Dealers w ith ISRs.
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.
10 Your payroll department should be able to supply this figure.
11 Your accounting department should be able to supply this figure.
12 Incorporate expenses from your training plan.
13 Your accounting department should be able to supply this figure.

P age | 83
ISR Identified NOTES

Critical Success Factors
During training, practicing Dealer ISRs said the critical

success factors of the position include:
- Asking the right questions

- Listening to the customer
- Identifying a customer’s needs
- Pre-planning calls
- Developing relationships
- Offering value and benefits
- Being a consultant! – being the “go-to guy”
- Working for the customer
- Welcoming objections – the customer is telling you
what he needs
- Extending your territory
- Follow ing up!
In addition, w e asked this group w hat they liked and

disliked about being an ISR …
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

P age | 84
ISR Business Case Checklist
 Create a Market Snapshot
 Conduct coverage study
 Target Grow th Opportunities
 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)
 Yes  No Sufficient to justify an ISR?
 Prepare a Business Case
 Yes  No Support ISR concept w ith acceptable ROI?
 Yes  No Move forw ard with implementation?

P age | 85

02-01 ISR Business Case Worksheet
02-02 ISR Quantitative Measurements
02-03 Outbound Telephone Sales Representative Metrics

(U.S. Business-to-Business)
02-04 “Sample Caterpillar” ISR Business Plan

P age | 86
ISR NOTES
Quantitative Measurements
Because the ISR performs his or her duties from a

workstation located at the Dealership, and because
modern telephony equipment provides a great deal of call
detail, many measurements are available to track the
success of the ISR initiative.
The tables on the follow ing three pages provide a list of

measurements currently used by Dealers. Typically, a
Dealer w ill choose three or four metrics from this list to
track at one time, depending on w hat is most important to
the Dealership.
The final tw o tables in the Document section of this tab

provide general information on business-to-business
telephone selling metrics in the United States outside of
the Caterpillar netw ork.

P age | 87
ISR Quantitative Measurements Document 02-02
Measurement Description Advantage Disadvantage
Phone Switch Calculated from the

Measurements data provided by the
phone switch
Number of minutes on Total talk time in Supports long May encourage

the phone per day minutes per day; conversations frequent calling of
(phone time) typically calculated favorite customers
and averaged over a
month
Number of dials per Total number of Supports activity May encourage

day connected dials per requirements; can indiscriminate dialing
day; typically easily be compared to
calculated and PAR and number of
averaged over a accounts (coverage)
month
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
Sales Results Calculated by sales

information from
accounting
PTOS share A measure of market Universally accepted Dependent on quality

penetration benchmark of data
Sales growth in Sales within the A universal May be influenced by

territory accounts in the benchmark of a “starburst ” sale or
territory from one salesperson is sales negative outcome in a
period to the next growth few accounts

P age | 88
Sales Results, Calculated by sales

Continued information from
accounting
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
Activities Calculated by tally
Number of proposals Number of written Encourages ISR to May encourage

sent to customers or (mail or electronic) propose and close excess electronic and
aggregated dollar proposals sent to mail “paperwork”
value of proposals customers; can be
used in conjunction
with sales to calculate
success percentage
Number of decision ISR reports decision Decision maker Subjective definition

makers contacted maker conversations conversations are the of who a “decision
during a time period “gold” of ISR activities maker” is within an
(typically monthly) account

P age | 89
Activities, Calculated by tally

Continued
Number of leads Number of leads for Promotes generating Requires

generated other sales leads for high-value communications
professionals within opportunities between selling
the Dealership (undercarriage, platforms and cross-
machine sales, reporting
rentals)
Number of records Quality of the data in Increases marketing Requires a verification

cleaned the database – good and sales audit to check results
addresses, telephone effectiveness
numbers, and
machine populations
Cost per contact Cost of ISR/number of Allows comparison to Requires an analysis

contacts reached other channels (PSSR of the quality of each
or marketing) type of contact
Other Analysis By survey
Customer satisfaction Survey metrics Defines customer Not tied directly to

or customer loyalty satisfaction with revenue
contact method and
representative

P age | 90
Outbound Telephone Sales Representative Metrics

United States Business-to-Business Document 02-03
Location of the Telephone Sales Representative
Company headquarters 60%

Other company locations 23%
Home office 9%
Outsourced 4%
Other 4%
Num ber of Representatives in the Telephone Sales Group
Under 10 43.9%
11 to 25 19.3%
26 to 50 9.8%
51 to 150 12.2%
>150 14.9%
Telephone Sales Group Measurements
# of leads generated 80%

# of calls per day (connects) 75%
# of appointments (for field sales) 73%
Phone time 63%
Revenue 60%
Tally activities (proposals etc.) 35%
Average Sale Cycle Length
< 1 Month 34.2%

1 – 3 Months 34.2%
4 – 6 Months 19.8%
> 6 Months 9.9%
Don’t Know or Don’t Measure 1.8%
Average Num ber of Calls to Close a Deal
1 to 2 20.6%
3 to 5 34.1%
6 to 9 23.3%
> 10 14.8%
Don’t Know 7.2%

P age | 91
Typical Annual Telephone Sales Quota
< $ 250,000 31.7%

$ 250 - $ 500,000 12.7%
$ 500 - $ 750,000 18.3%
$ 750 - $ 1,000,000 12.7%
> $ 1,000,000 24.6%
Telephone Sales Representative Com pensation Target at Sales Quota
< $ 30,000 per year 11.9%

$ 30,000 - $ 50,000 26.2%
$ 50,000 - $ 75,000 28.6%
$ 75,000 - $ 100,000 15.1%
> $ 100,000 18.3%
Telephone Sales Turnover Percentages (Annual)
Voluntary 21.8%
Involuntary 20.1%
Business Case Statistics – Business-to-Business Sales
Deployment of Telephone Sales
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.
77.1% of business-to-business companies selling products/services over $10,000 use a

blended approach of personal visits (PSSR) and telephone sales ( ISR).
Blended Marketing Campaigns
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:
 Direct mail – first contact

 Telephone follow -up – second contact
 Email – third contact
 Telephone – fourth contact
The marketing campaign section of this guide recommends using direct mail in conjunction w ith
the sales group in this manner.

P age | 92
Sales Cycle Metrics
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.
When qualifying leads, most companies look for:
 Decision- making authority – 68.5%

 Realistic purchase timeframe – 60.4%
 Enough money (budget) – 59.5%
 Specific account characteristics – 58.6%
 Sufficient degree of need – 51.4%
Percentage of Inquiries Converted to Leads
By Size of Average Sale
Less than $300 26.8%
$300 to $999 23.0%
$1,000 to $9,999 22.5%
$10,000 and over 28.4%
Source:
B-to-B Direct Marketing Benchmarks:

“From Lead Generation to Customer Retention”
Direct Marketing Association

P age | 93
Resource Key
 Caterpillar Internal Contact Resource

 Product Resource
Creating a Business Case
 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
 Understanding Marketing Planning and Tracking, a foundational course, is available

through the Caterpillar Learning Management System (CLMS) or on CD ( Media Number
PERJ0053).
PTOS
 The District/Area Caterpillar office can provide more information on the application of
PTOS.
 Exploring the Practical Applications of PTOS is available through the Caterpillar

Learning Management System (CLMS).
Coverage Studies
 The District/Area Caterpillar office can provide more information on doing a coverage
study for your Dealership.

P age | 94
Sample Business Plan Document 02-04
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.
You will find “Sample Caterpillar” examples in this guide as follows:
Item Description Tab
Business Plan A business plan created to ISR Business Case

support the creation of an ISR
group.
Marketing Plan A typical marketing plan for an Managing

ISR group.
ISR Expansion A business plan for grow ing Adding ISRs

an existing group of ISRs.
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.

P age | 95
Sample Caterpillar
ISR Business Plan
Objectives for the Plan

 Provide a compelling business case for contacting small customers w ith an Inside Sales
Representative ( ISR) using the telephone
 Establish metrics for the ISR position
 Create a career path for ISRs and a feeder system for other Dealer sales positions
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.

P age | 96
The lack of a product support relationship hurts Sample’s NOTES

ability to sell new machines and engines. The lack of
relationships has also made it difficult to promote
Customer Support Agreements w ithin this segment and to
renew Customer Support Agreements that have been sold.
Because current product support to the segment is poor,

our database is inaccurate, which wastes promotional
resources and disconnects Sample from parts and service
opportunities.
Since 2001, Caterpillar Dealers have deployed Inside

Sales Representatives or ISRs to build relationships w ith
customers w ith 1 to 6 Caterpillar machines. This position
uses the telephone but is not telemarketing. Think of the
ISR position as a PSSR w hose transportation to the
customer is a telephone, not a vehicle. Whereas our
PSSRs maintain active relationships w ith approximately
150 customers at a PA R of 4 or more, ISRs can effectively
work a customer base of 600 to 1000 customers – 4 to 5
times as many.
Dealer’s report the cost per customer contact is $21.00 for

an ISR vs. $255 for a PSSR. An ISR can be expected to
generate $300 to $1,000 per account of additional revenue
for parts and servic e, plus additional machine leads.
Because of the low per contact costs and the high
incremental revenue potential, the ISR positions have
been very profitable for other Dealers.
Finally, other Dealers have had success beyond product

support by utilizing ISRs to sell used machinery, rental,
and CCE/BCP equipment. If this plan is implemented,
Sample w ill gain the expertise to expand our sales efforts
in these product categories in the future.

P age | 97
Business Case
I began w ith a coverage study that identified 6,542

accounts with less than 7 Caterpillar
machines/engines. I cleaned from this database
customers:
 With no sales in the last three years

 That had no machines/opportunity
 Who w ere out of Sample’s territory
 Who w ere traders/rental-only or direct
competitors
This left 4,622 customers w ithin this segment that can be assigned to ISRs.
DCAL Numbers for this Segment:
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
Using the 30% metric: 1,200 x 30% = 360 disqualified accounts.
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.

P age | 98
Revenue per ISR
840 accounts x $300 incremental revenue/account = $252,000. I’ll use $250,000 in the
calculation as minimum revenue:
Minimum Base Case Financial
Currently in this segment, our product support revenue is

one-third service and tw o-thirds parts. Our gross margin
(profit after direct) for servic e is 26%; 19% for parts. The
blended gross margin w ould be as follows:
((26*1) + (19*2))/3 = 21.3%
$250,000 x .213 = $53,250 Incremental gross profit

generated
Our expenses are as follow s:
ISR Salary $ 30,000

Payroll burden (w orkmen’s comp, social security, etc.) 15% $ 4,500
Office burden (rent, utilities, office space, telephone, etc.) 15% $ 4,500
Sales management expense (manager, accounting, etc.) 25% $ 7,500
Direct support (training, travel, etc.) $ 3,000
Total Costs: $ 49,500
Minimum case gross profit $ 3,750

Minimum case ROI 7.5%
The minimum base minimum case makes these conservative assumptions:
 Only 1 ISR is deployed; additional ISRs w ill reduce the office, sales management, and
direct support burdens per ISR
 The very minimum expected return from Caterpillar Dealer’s is used
 Revenue w ill grow in subsequent years
Expected Case Financial
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

P age | 99
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.
$400,000 x .213 = about $85,000 incremental gross profit generated
Our expenses are as follow s:
ISR Base Salary $ 30,000

ISR Commission $ 150,000 x .05 = $ 7,500
ISR Salary Total $ 37,500
Payroll burden (w orkmen’s comp, social security, etc.) 15% $ 5,625
Office burden (rent, utilities, office space, telephone, etc.) 15% $ 5,625
Sales management expense (manager, accounting, etc.) 25% $ 9,375
Direct support (training, travel, recruiting, etc.) $ 3,000
Expected case gross profit $ 23,875

Expected case ROI 39%
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.
Because the ISR is in the office, it is

easier to measure and monitor
performance as compared to a
position in the field. I propose the
follow ing four metrics be tracked and
reported back to senior management:

P age | 100
 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.
 Calls per day.

o After training is completed, w e w ill set an initial goal of 30 calls per day, reducing
to 20 calls per day in the second quarter as inbound calls begin and
quoting/proposal/customer service issues increase.
 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.

P age | 101
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.
The background section of the Getting Started tab includes

information on interfacing the ISR position w ithin the
Dealership and the equipment required.
Getting Started w ill also assist you in creating a marketing

and promotion plan for the ISR position by addressing
customer segmentation, marketing campaigns, and
promotions.
At the end of Getting Started, you w ill learn a model of

salesperson performance that w ill be referenced
throughout the remaining sections of the Guidebook.
Let’s get started!

P age | 102
Guidelines for Assigning NOTES

Inside Sales Accounts
Target customers covered by an inside sales function w ill
typically ow n one to six Caterpillar machines. The ISR w ill
be responsible for review ing and updating customer
records regarding machine ow nership and usage over
time.
If a customer is not assigned to a PSSR by the Product

Support Sales Manager, the customer should be assigned
to an ISR.
During initial qualification, it is not uncommon to disqualify

25% or more of an ISR’s accounts based on the current
customer situation (out of business, etc.). In addition,
some customers may continue to purchase hardw are or
supplies from the Dealer for hobby,
recreational, or non-equipment related
uses. Assigning these customers to a
hybrid salesperson code such as
“unassigned” reduces the likelihood that
the qualification w ill be unnecessarily
repeated.
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.

P age | 103
Contact management software is the focal point for the NOTES

ISR’s daily w ork process and follow -up activities. The
better the application’s functionality, the more effective the
ISR w ill be at performing the tasks of the job.
A w ide variety of CRM systems are available for contact

management. Some Dealers use off-the-shelf solutions
such as Goldmine or ACT, w hile others use proprietary
software created by themselves or other Dealers. Other
alternatives include:
 DBS – Simple call activity reporting is available

within the DBS application
 SFMO (Sales Force Mobile Office) – Supports

off-line call activity reporting
 Dealer developed DBS front-end applications –

A number of Dealers have developed
customized w eb front-ends to their DBS data
bases and have expanded the data and
functionality provided in the standard DBS
application
 Siebel CRM – Provides full function call and

information management functionality as a part
of DBSi.
No one CRM solution w ill fit all situations. Here are some
key considerations w hen selecting a CRM:
1. The ISR w ill need access to account and purchase

history
2. Scheduling callbacks in some type of calendar

function is critical
3. It is helpful if segmentation and filtering can be

done using a variety of criteria:
a. DIM, WWM, DIFM
b. Size of company
c. Number of machines
d. Type of machine
e. Type of business
f. Customer preference, etc.
4. Note keeping and call history options should be

user-friendly

P age | 104
If possible, ISRs should be incorporated into existing NOTES

processes as if they are PSSRs. While some exceptions
may need to be made, treating ISRs like PSSRs in the
Dealer’s information system enables existing controls and
monitoring processes to be used. Using the PSSR
process also accomplishes a pre-field training requirement.
Dealers should contact their District or Area office for

further assistance in defining the best CRM approach for
their current situation.
Dealer Dealer
M arketin g CRM Vend or Dealer Con tact Cont act
Dealer Organizat ion System Website Cont act Phon e Email C omments
Using ACT! w ith 4 ISRs, 2 U/C specialist and 24

Andy Jameso n, PSSRs. Last year the ISRs were using
HOLT CAT NAC D ACT! Pr oduct Supp ort 972-721-28 15 andrew .jameson @holtcat.com Salesforce.com
Andrea Young,
Wheele r Mar keting
M achinery NAC D SalesLin k Man ager 801-978-13 59 ayou ng@wh eelercat.com
M 450 B orusan
M akina Servis
T.A.S. EAM E SAP CR M w ww.sap.co m Have been using Sap CRM since 2004,.
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.
200 8 Q1 this pro gram is up and r unning as our

NC Machiner y NAC D SalesLin k http :/ /wsimacs/ Dan Th omson 425-251-45 97 dthomson@ncmachin ery.com primary CR M to ol.
Halt on NAC D Saleslink Ch ris Harbeso n charb eson@halto nco.com All PSSRs are on the system.
Ro lling o ut to Peterson Mach inery this year.

P eterson Hold ing NAC D Saleslink Kari Can naday 510-618-29 65 klcan naday@peter sontr actor .com Already rolled o ut to Peterson Tracto r.
Holt of CA NAC D None
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
P at ten NAC D SalesLink B ill Dears 630-758-12 29 dearsw@pattenin dustr ies.co m
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
Fabick NAC D Jerry Juliette 314-378-79 80 jer ry.julie tte@fabickcat.com

506-452-66 52 We are curr ently w aiting on DBS up date to
Atlantic Tract or NAC D DB S B ill Nealis ext 23 6 bsn@atlcat.ca review p ossible CR M op tion s.
Mike
Hawth orne NAC D SalesLink Car cioppolo 858-674-70 77 mcar@hawtho rnecat.com

P age | 105
Contact Rate and Coverage NOTES

Management
Once the account relationship is established and the
account opportunity has been qualified, the Customer
Relationship Management techniques are usually a
combination of Planned Annual Rate ( PAR) of customer
contact and planned seasonal promotions.
 Most customers w ill have a PA R of 4 (once a

quarter), although the largest on the ISR’s
assigned account list may have a PA R of 12
(monthly). Some Dealers have created a PAR
assignment matrix based on sales.
 ISR coverage w ill need to be managed to

ensure the ISR has the time available to make
calls given call back volumes and follow -up
activities.
 The PA R plan for accounts and proposals to

change PA R should be actively managed by
the ISR and his/her supervisor.
During promotions, the ISR should be expected to contact

every customer on the ISR’s list that w ould qualify for the
promotion. Promotion contacts typically count toward
meeting the PAR requirements of the account.

P age | 106
Changes in Account NOTES

Assignments
Assignments should be re-evaluated periodically.
Customers assigned to an ISR may grow in volume to a
size normally assigned to a PSSR. When an account is
being evaluated for re-assignment, it is usually
recommended that the customer ’s preference also be
considered. In many cases, an overlap w ill be allow ed to
exist since the ISR influenced the grow th of the business
with the customer and the customer may experience an
unw elcome decrease in attention if moved from the largest
customer of an ISR to the smallest customer of a PSSR.
When making changes in account assignments from an

ISR to a PSSR, the follow ing questions should be asked:
1. What are the specific advantages to the Dealership

and to the customer for a change in coverage?
2. Does the customer have a preference as to the

type of coverage he or she receives?
3. Can the PSSR be responsive to the needs of the

customer?
Simply reaching a specific customer revenue target level

should not be the primary reason for changing from ISR to
PSSR coverage.

P age | 107
Customer Segmentation NOTES
ISRs serve customers across all industries, products, and

services, including pow er systems applications. ISRs are
assigned to all customer segments including Do- It-Myself
(DIM), Work-With- Me (WWM) and Do-It- For-Me (DIFM).
An extensive discussion on the types of customers and

examples of each is included in the Caterpillar audio training
course for ISRs, Building Customer Relationships Over the
Phone.
Products and Services

ISRs are responsible for selling all Cat parts product brands
including Reman, Classic, and Nexus. They may also offer
Dealer exchange and used parts product lines, repair parts for
allied products, and Dealer service offerings such as S•O•S SM
Services. The same products and services that a PSSR offers
to customers should be offered by an ISR.
Dealership Interaction
An ISR must partner w ith and utilize other Dealership

personnel w hen customers require job-site services aw ay from
the Dealership. Examples of this are the deploy ment of
maintenance, hydraulics, or Custom Track Service (CTS)
specialists to a customer site to validate needs and/or deliver
the “solution,” and internal partnering w ith Reman or other
product and servic e experts to customize offerings or develop
quotes. By leveraging the expertise of their product support
colleagues, ISRs w ill be able to represent and promote all
solutions offered by the Dealer’s Parts and Service
Department.

P age | 108
Process Mapping NOTES
The ISR Process Map outlines the critical activities,

information access and flow, and interaction with key
Dealer resources. Note the follow ing from the Process
Map:
 ISRs routinely mail product literature and quotes to

customers. Requests for face-to-face or formal
presentations to a customer should be referred to the
ISR’s supervisor (1 on the Process Map).
 The focus of the ISR relationship is to increase

customer visibility to the Dealer’s parts and service
capabilities. The ISR is expected to pass requests
on to the parts counter and service leads on to the
service department (2 on the Process Map).
 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 CTS, Custom Hydraulic
Service (CHS), Technical Analysis (TAI/TA2) or
other machine inspections (3 on the Process Map).
 ISRs are expected to use DBS to price parts, check

availability, and prepare quotations for maintenance
solutions for the customer. Quoting assistance from
the service department is provided w hen repair
processes are complex or machine inspections are
required. Discount authorization limits should be
defined by service, commodity, or product (4 on the
Process Map).
 The ISR is responsible for negotiating and

completing the sale (including credit author ization).
Situations requiring special negotiations, credit
exceptions, or financing via Caterpillar Financial
Services Corporation (CFSC) or the Dealer are to be
forwarded to the ISR’s manager (5 on the Process
Map).
 Dealers should establish an efficient communication

process, guidelines for PSSR involvement and
support w here required, and a follow -up process for
issues referred to the outside PSSR (6 on the
Process Map).

P age | 109
 Special Situations – An ISR should inform his/her

manager w hen a situation requires a manager or
specialist, or involves sensitive customer issues (7 on
the Process Map).
Process Map

P age | 110
Environmental and Policy NOTES

Considerations
The ISR position has a number of special requirements
due to the nature of the high phone call volume, multiple
customer interaction, and varied request environment that
will be created. The follow ing should be taken into account
for the ISR position:
 Choose a low-traffic area for the ISR’s

workspace that minimizes distractions and
surrounding noise to maximize productivity.
 Provide the proper w ork tools including:

- Comfortable w ork area (an ISR w ill occupy
this space for the majority of each day)
- Computer (see below)
- Advanced telephony system (see below)
 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.
 Decentralized vs. centralized location –

Because the ISR is a new sales role that
requires specif ic calling disciplines and Dealer
support, it is recommended that all ISRs be
located in one primary location. This enables
the ISR team to quickly and easily learn from
and support each other in the high call volume
environment in w hich they will be w orking. If a
decentralized approach is implemented (ISRs
located w ithin the branches they support),
special consideration needs to be given to
ensure the sharing of Dealer best practices,
and effective management. Note that Dealers
who adopted a decentralized approach have
migrated tow ard restructuring into a centralized
environment.

P age | 111
Here are some pros and cons of centralization and decentralization:
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.
 Centralization allow s for continuity of the activities.
 Centralization makes one Sales Manager accountable for the project.
 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 feel as if they are in control of the position.
 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).

P age | 112
NOTES
Equipment Requirements
The proper equipment infrastructure is critical to the
productivity and management of the ISR position.
 Telephone system to include:

- Voicemail
- Hands-free conference call
- Headset
- Call accounting softw are that provides
statistics and reports on inbound and
outbound phone calls (including length of
calls) should be considered
 Telephone lines – Both inbound and outbound

calls should be enabled at each w orkstation.
Employees receiving Dealership calls need to
be informed to transfer calls directly to the ISR.
 Computer – A desktop computer is required

with access to all Dealer business systems
including DBS, InfoCast, and the standard MS
Office Suite.

P age | 113
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:
 Revenue by account compared to last year

 Revenue by account compared to PTOS
opportunity
 Revenue attainment against individual
customer revenue objectives
 Average gross margin by ISR territory and
customer
 DCAL for inside sales accounts
 Ratio of sales per outbound sales calls
 Number of orders by customer
Operational reports for weekly review include:
 Average number of outbound calls per day w ith

average call length
 Average number of inbound calls
 Revenue attainment vs. sales targets
 Number of leads generated by product/service
are

P age | 114
NOTES
Marketing Campaigns and

Promotions
Marketing and promotional campaigns that had previously
been designed for PSSR assigned accounts should be
used to reinforce the ISR’s relationships w ith his/her
assigned customers. Direct mail, telephone, e- mail
marketing, and other marketing communication methods
that encourage customers to contact their local Dealer for
more information can be used to generate leads for ISRs.
To maximize the immediate inside sales value to

customers and promote solid business relationships,
special offers or information customized to customer needs
should 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 dow n and maximize the effectiveness of their
equipment maintenance efforts.
Several standard promotional programs are useful for

inside sales:
Promotion Packager
Promotion Packager gives Dealers the pow er to

conveniently create and execute marketing campaigns
from their desktops. It provides the capability to prepare
customized promotional materials (brochures, posters,
direct mail, etc.), dow nload files to a printer of choice, or
utilize the program as a complete turn-key solution.
Dealers also have the ability to upload, develop, and
maintain mail lists and/or utilize the Caterpillar Marketing
Database. Promotion Packager can be accessed at the
follow ing URL:
https://catcampaigncentral.com

P age | 115
Service Points NOTES
Service Points is a customizable 16-page direct mail

publication that allows the ISR to send a personalized
message to the customer. Service Points keeps the
Dealer ISR fresh in the mind of the customer, no matter the
customer size or how often the customer is called. It is
published six times per year and is packed w ith great
information on product support including service,
maintenance and operator tips, new products, and more.
To subscribe, contact Progressive Impressions
International at 1.800.774.6899.

P age | 116
First Contact NOTES
A three-stage promotional effort can be utilized w hen

initially launching new inside sales coverage. Each
promotional effort needs to be carefully evaluated to
ensure that relationship building is the primary objective
and that the costs do not outweigh the benefits. A sample
three-stage promotional effort:
Promotion # 1:
 Theme: Advise customers that a new resource

has been added to more effectively meet their
needs w ith regard to products, service, and
information, thereby helping to reduce their
costs and streamline their equipment
maintenance and repair processes
 For mat: Letter (8-1/2 x 11) 2-color
 Offer: Customer w ill be offered a Cat cap for

taking the ISR’s first call
Promotion # 2:
 Sent in advance of a specif ic call-back date
 Theme: Promotion of one or more maintenance

products
 For mat: Postcard
 Offer: Offer of a free oil sample w ith purchase

of fluids, filters, oils, and coolants
Promotion # 3:
 Sent in advance of a specif ic call-back date
 Theme: Promotion of one or more consumable

products
 For mat: Postcard
 Offer: Free set of work gloves w ith purchase of

tires, batteries, belts, or hoses

P age | 117
Subsequent Contacts: Compelling NOTES

Reason to Call
When an ISR has completed the initial series of three calls,
he/she w ill schedule subsequent calls to customers based
on the customer’s planned annual rate of call, or PAR.
Typically a PAR of four is used, which means the ISR w ill
contact the customer four times a year, or quarterly.
When a customer w ho was targeted for the three-stage

promotion arrives again in the call queue at PAR, the ISR
can use one of two approaches to open the call: he/she
can open w ith “Just w anted to check in,” or by presenting
something that may be of interest to the customer.
If the ISR chooses to use the “check in” approach, he/she

will uncover some opportunities w hen the customer has a
business issue on top of mind. The ISR w ill get a chance to
solve the issue because the ISR called at the right time.
How ever, if the customer is not facing an immediate issue,
he or she may not see value in the call because the ISR
appears to be simply fishing for potential business.

P age | 118
In addition to uncovering the same top of mind

opportunities as the “check in” approach, the ISR w ho NOTES
chooses to open the call w ith something of potential
interest w ill generate opportunities around the call opening,
dramatically raising the productivity of the call.
From the customer’s point of view , an ISR w ho chooses to

open the call w ith something of interest provides value.
This call opening method tells the customer “This
salesperson has listened to me, is responsive to my needs,
and w ants to help my business.”
When used as a way to open the call, the “something of

potential interest” is called a compelling reason to call. The
customer is compelled by his interest to listen and respond
to the salesperson.
ISRs have four opportunities to create a compelling reason

to call:
A. The customer narrative – Notes from previous

conversations with this customer
B. Customer service – Interactions the customer has

had w ith the Dealership since the last call
C. Specials and promotions – Current offers of the

Dealership
D. Something new for the customer’s equipment – A

product or service the ISR believes w ould provide
benefit to this customer
A - Customer Narrative
The customer narrative is the notes kept by the ISR in the

customer relationship management ( CRM) system. For
example, if on a call a customer mentions they are starting
a new contract and w ill be using their Cat backhoe loader
on the project, the ISR w ould document this narrative in
the customer’s notes. On the next call, the ISR could ask
the customer about the contract and how the backhoe is
working. This w ould be a compelling reason to call from
the customer narrative – a good w ay to open the next call.
The customer narrative compelling reason to call is the

most pow erful call opening technique available. It tells the
customer “This salesperson has listened to me and this
call is about me.” ISRs that create call openings in this w ay
build strong relationships.

P age | 119
As the call from the customer narrative progresses, the NOTES

ISR is able to bring up any specials and promotions the
Dealer is offering and explore the customer’s interest in
maintenance supplies and other items. By opening the call
about the customer and the customer’s specific business
situations, the ISR earns the right to discuss Dealer
products and services that are applicable.
B - Customer Service
Customer service calls typically involve the follow ing

topics:
 PIP/PSP notices
 PM TA1 visual w alk-around inspection reports
 S•O•S reports
 Recent service in the shop
 Warranty expiration
These compelling reasons to call are also unique to the

customer and provide a great way to engage in a
productive conversation. If there is nothing in the customer
narrative from w hich to construct a compelling reason to
call, a customer service compelling reason to call is the
ISR’s next choice.
C - Specials or Promotions
If a customer has expressed interest in learning about

specials and promotions, this can be used as a compelling
reason to call. For example, a compelling reason to call
might be:
“You asked me to give you a call if w e had a

special or promotion w hich may fit your business.
Our Dealership is offering 15% off any antif reeze
order over 10 gallons (liters) if the order is placed
by the end of the month. Can I ask you a few
questions to see if this special might be a fit?”
If the ISR does not have a compelling reason to call from

the customer narrative or from customer service, specials
and promotions may be a good next step.
D - Something New for the Customer’s Equipment
The ISR may w ant to propose something new for a

customer’s equipment. For example, the ISR may w ant to
inquire about undercarriage or ask if the customer is using
Cat filters. If possible, the ISR should avoid using this

P age | 120
compelling reason to open the call unless there are no NOTES

other options available.
Setting Up the Next Compelling Reasons to Call in the

First Three Calls
Typically, an ISR does not need to ask the customer ’s

permission to call on something from the customer
narrative or regarding customer service. Customer
narrative calls and customer service calls are compelling in
and of themselves. How ever, if the ISR is calling about a
special or promotion, or is calling about something new for
the customer’s equipment, it is w ise to pre-qualify the
customer’s interest in receiving calls about these topics.
The time to ask about receiving calls about promotions,

specials, or something new for the customer’s equipment
is w ithin the first three calls. Here are questions the ISR
can ask:
“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?”
Typically, customers w ill answ er “Yes, I’d like to be

contacted.” If the customer responds favorably, the ISR
can use this permission in the compelling reasons to call.
For example:
“You asked me to give you a call if w e had a

special or promotion that may be applicable to your
business …”
“You asked me to give you a call if I saw a new

product or service that may be beneficial for your
business …”

P age | 121
Have Something Ready for an ISR to Create a Compelling

Reason to Call – The Potentially Painful Six to Twelve
Months
The initial three phone calls are relatively easy calls to

make. Customers are genuinely interested. Many ISRs,
how ever, struggle w ith creating compelling reasons to call
for subsequent calls. This may lead to call reluctance.
Typically ISRs complete the first three rounds of calls by
six to twelve months (depending on territory size),
therefore this struggle to create new compelling reasons to
call may surface at the six to tw elve month timeframe.
Managers can help their ISRs by providing information on

potential customer service calls and by holding quarterly
promotions or specials. ISRs should be able to alw ays find
a compelling reason to call w ith these resources.
The Guidebook contains eleven documents that can assist

you and your ISRs in creating compelling reasons to call.
You’ll find three call outlines for the first calls made to
customers, four sample marketing plan call outlines (one
for each quarter), and four sample customer service call
outlines.
Three Initial Call Outlines

First Call Document 03-01
Second Call Document 03-02
Third Call Document 03-03
Sam ple Marketing Plans
Cat Care Meeting Document 03-04

Winter Anti-Freeze Special Document 03-05
CSA – “Have a Headache Free Season” Document 03-06
Maintenance Mania Document 03-07
Sam ple Customer Service Calls
PIP/PSP Document 03-08

SOS Reports Document 03-09
TA1 Visual Walk-Around Inspections Document 03-10
Extended Warranty Document 03-11

P age | 122
How an ISR Uses a Call Outline
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.

P age | 123
Call Outline
Document 03-01
Situation: INITIAL CALL to CUSTOMERS. Dealership has not sent

an ANNOUNCEMENT.
 Smile!
 Offer: Cat Hat at close for taking the call/patronage
 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 >.”
 Compelling Reason to Call – “ In our ongoing effort to ensure outstanding customer

service, I have been designated to support you and your product and service needs. My job
includes keeping you up-to-date about the latest products that have a potential for positive
impact on your equipment fleet and also to let you know of any promotions w e are offering.”
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?
Describe to me what is important for you in choosing a parts or service provider.
Closed-Ended Questions:
Occasionally, our Dealership has specials on parts or service. Would you like to be contacted
about these promotions?
Do you do your own service work?
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.

P age | 124
Call Outline
Document 03-02
Situation: SECOND CALL to CUSTOMERS. Call 2 out of the series of 3.
 Smile!
 Offer: Maintenance products
 Verify – You have the correct contact from your notes.
 Clarify – “Hi, this is ___________ from < your Dealership >.”
 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?”
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.]
Do you do oil sampling now?
Do you purchase your own maintenance supplies?
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?

P age | 125
Call Outline
Document 03-03
Situation: THIRD CALL to CUSTOMERS. Call 3 out of the series of 3.
 Smile!
 Offer: Consumable products
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?”
Tell me about how you select a vendor for your consumable products. (i.e. batteries, belts,
hoses)
Explain your inventory policies on consumable products.
How is your supply of ___________?
Where do you purchase your _________ now?
desires the follow-up calls.
Close:
May I place your order for __________ and send you your free work gloves?

P age | 126
Sample Marketing Plan 1
Cat Care Meeting Document 03-04
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.
Be sure to line up product specialists to help.
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.

P age | 127
Call Outline
Document 03-04
Situation: CAT CARE MEETING
 Smile!
 Offer: Cat Care Meeting – learn about maintenance and operation. Refreshments
served.
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?”
Tell me what you would like to learn about your equipment?
If you could wave your magic wand, what demonstrations would you like to see?
What kind of operating environment do you have?
How often do you replace your equipment?
Typical Next Steps: Meet the customer at the Cat Care Meeting.
Close:
May I sign you up for the Cat Care Meeting?

P age | 128
Winter Anti-Freeze Special Document 03-05
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.
The compelling reason to call in this example is:
“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.

P age | 129
Call Outline
Document 03-05
Situation: SEASONAL PROMOTION - ANTIFREEZ E
 Smile!
 Offer: 10% discount on orders of antifreeze over 50-gal (litters)
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?”
How do you prepare for the change in seasons?
Explain your inventory policy on antifreeze. <Follow-up> Would now be a good time to stock up
for the season?
How is your current supply of antifreeze?
Where do you currently purchase your antifreeze?
Close:
May I place your order for antifreeze at the special discount?
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?

P age | 130
CSA – “Have a Headache-Free Season” Document 03-06
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.

P age | 131
Call Outline
Document 03-06
Situation: CSA - HAVE A HEADA CHE-FREE SEASON
 Smile!
 Offer: 5% discount on CSAs
 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]
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.]
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:
May I create a Customer Support Agreement for your review?
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?

P age | 132
Maintenance Mania Document 03-07
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.

P age | 133
Call Outline
Document 03-07
Situation: MA INTENA NCE MA NIA
 Smile!
 Offer: 10% off maintenance supplies
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.]
Tell me about the status of your maintenance supplies.
Describe to me the type of conditions ___________will be operating in this year.
On your ____________, have you noticed any sign of wear?
How many hours do you expect to operate this year?
Typical Next Steps: Order fulfillment.
Close:
May I set up that order for you?

P age | 134
Sample Customer Service Calls

The next call outlines four typical customer service situations an ISR can uncover by review ing
the customer’s history and the Dealership’s internal documents.
Call Outline
Document 03-08
Situation: CUSTOMER SERV ICE

OPEN PSP/PIP
 Smile!
 Verify – You have the correct contact. – See CRM Notes
 Clarify – “Hi, ________calling < your Dealership >.”
 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.”
Tell me about your current workload.
Describe to me how this piece of equipment is being used.
Do any of your other units need service at this time?
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.
Can I have the service dispatcher call you?

P age | 135
Call Outline
Document 03-09
Situation: CUSTOMER SERV ICE

S•O•S REPORT – DIM Customer
 Smile!
 Verify – You have the correct contact. – See notes in CRM
 Clarify – “Hi, ___________ calling from < your Dealership >.”
 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]
How do you use this engine?
How would your business be impacted by unscheduled downtime?
Did your mechanic check the magnetic plugs during this PM?
Did he check the breather elements?
Typical Next Steps: Obtain parts list/parts sale.
Close:
Can I place this order for you?

P age | 136
Call Outline
Document 03-10
Situation: CUSTOMER SERV ICE CALL

TA1 VISUAL WALK-AROUND INSPECTION
 Smile!
 Verify – You have the correct contact.
 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.”
< Dependent on findings >
< Dependent on findings >
Typical Next Steps: Provide field service.
Close:
I’d recommend scheduling field service to correct this situation. Can I get your engine on the
schedule?

P age | 137
Call Outline
Document 03-11
Situation: CUSTOMER SERV ICE CALL

EXTENDED WA RRANTY
 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.”
Describe to me your equipment replacement plan. How long do you intend to own this piece of
equipment?
Does this equipment see heavy use?
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?
Typical Next Steps: Purchase of extended w arranty
Close:
I’d recommend you purchase the extended warranty. May I place that order for you?

P age | 138
Unique Promotional Opportunities NOTES
Customer events (such as the equipment maintenance

presentations Cat Care) held at the Dealer’s location w ith
dinner or lunch provided, have proven to be successful in
gaining Dealer mind-share w ith customers. These events
have the added benefit of introducing ISRs to contacts
within their assigned accounts.
The fact that the segmentation of many inside sales

assigned accounts may be as Do- It-Myself (DIM)
customers – customers who have decided to do their ow n
work, control the schedule and repair process, and do
business with those who help them do this best – also
provides a unique promotional opportunity for the
Dalership.
The ISR can be a very effective coverage resource to DIM

customers by providing convenience, know ledge, tooling,
and information to support their maintenance efforts.
Do-It-Myself Promotional Offering Considerations

Lev el Description Price
PM Parts and Literature Only

 Based on PM Planner and Standard Jobs Discounts on filters and
Lev el 1 other disposables through
 Overseen by Product Support designee use of applicable oils
 Kits built in warehouse
 Automatic resend triggered by S·O·S samples
PM Parts, Literature, Product Link Cellular

 Customer owns Product Link Discounts on filters and
 Customer gets access to machine hours and location other disposables through
 Dealer monitors and tracks hours use of applicable oils
Lev el 2
 Dealer provides reminder of PM due $XX a month for monitoring
 Overseen by Product Support designee and proactive tracking
PM Parts, Literature, Product Link Cellular

 Dealer technology division owns Product Link Discounts on filters and
 Customer gets access to machine hours and location other disposables through
 Dealer monitors and tracks hours use of applicable oils
Lev el 3  Dealer provides reminder of PM due
 Based on PM Planner and Standard Jobs $XX a month for monitoring
 Overseen by Product Support designee and proactive tracking

P age | 139
Getting Started – NOTES

Ensuring Your ISR
is Successful
The key principles of salesperson performance are role
perceptions, aptitude, skill level and motivation level. The next
sections of this Guidebook provide information to assist you in
creating an environment that supports these four key
principles:
Role Perception Does the ISR know what to do?
Aptitude Does the ISR have the

necessary personality
characteristics to do the job?
Skill Level Does the ISR know how to do

the job?
Motivational Level Will the ISR put forth the

effort?
Key Principles of Salesperson Performance

Role Perceptions
Aptitude
Salesperson Performance
Skill Level
Moti vation Level

P age | 140
ISR Salesperson and the Dealer
Section of this Guidebook ISR Dealer

Status A ctivity
Selection Suspect Recruiting

Applicant Qualifying
Candidate Selecting
Orientation New Hire Orienting
Training New Salesperson Teaching

Incumbent Improving
Leadership Mentor Leveraging
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.”
To support your efforts through this transition process, we

have included tabs in this Guidebook on Selection,
Orientation, Training, and Leadership. To tie it all together,
we have a tab on Managing.

P age | 141
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.
The first decision your Dealership w ill need to make w ith

respect to the selection process is the intent of the position.
Do you see the ISR position as a training ground for PSSRs
and other field sales positions? Or do you see the ISR as an
end to itself w here successful employees may remain for a
period of time?
Some Dealers hire ISRs w ith the understanding they w ill be in

the position for one to tw o years. Others have attracted
employees w ho excel at, and prefer, the inside sales position
and do not apply for a field sales job.
The aptitudes for an ISR position do not directly mirror a

PSSR, although they have much in common. Because the
telephone skills training an ISR receives w ill help him/her
considerably in the PSSR position, the ISR position can be a
good springboard to the outside. This is a selection issue the
Dealer w ill need to deter mine before review ing candidates.
Selection is the process managers go through to hire the best

ISR. This section of the Guidebook includes a defined
selection process from Dealer best practices.

P age | 142
Key Principles of Salesperson Performance – Aptitude
Role Perceptions
Aptitude
Skill Level
Moti vation Level
One of the keys of salesperson performance is aptitude. Aptitude is the personality

characteristics necessary to do the job. Personality characteristics are difficult or impossible to
change via training or coaching because they are such innate traits to human beings. Because
of this, aptitudes need to be “selected” in the hiring process.
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?
 The job requires constant learning. Does the candidate

like to learn? Is he/she able to pick up new know ledge on
his/her ow n?
 The job requires excellent project m anagement skills.

The ISR w ill w ork w ith a database of 600 to 1,200 accounts.
Does this individual have the project management skills for
this type of work?
 The typical salesperson persona – the used car salesman, if

you w ill – would probably not be the best ISR. This individual
may not be able to w ork a database, stay on task, or make
the dials. On the other hand, the person w ith a customer
service persona may not be aggressive enough to close sales
using the telephone.
 A sales manager w ill not go wrong investing time in the

selection process. The right salesperson will make a w orld of
difference for you once in the job. The w rong salesperson w ill
be miserable, w ill not serve your customers w ell, and w ill
absorb a great deal of your time.

P age | 143
 World-class sales managers of telephone sales people

typically invest their time in selection, in coaching, and in NOTES
maintaining the sales culture of the department – often in this
order.
 If your ISR sales department is a farm team for other Dealer

positions, you w ill probably find yourself hiring on a
continuous basis. You w ill also probably be flexible on w hen
candidates start. If you don’t find the right candidate, you w ill
want to leave a position open until the right person appears. If
you discover a great candidate early, you may w ant to hire
sooner than planned.
 The metric used by a w orld-class Cat Dealer is 70 resumes

lead to one hire. Be picky – everything else w ith respect to
the success of the ISR initiative flow s from hiring the right
person.
The Nine-Step Model

Selection begins w ith determining w hether the ISR position is a stepping stone to a field sales
position, or if the position is a destination w ith advancement available, but not pre-planned. This
career path decision determines the personality traits and aptitudes that are fed into the selection
criteria.
 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.

P age | 144

P age | 145
Dealers have taken tw o approaches to hiring individuals NOTES

into the ISR position. In most cases, the ISR is a
development position w here it is important to hire
candidates that w ill grow into other Dealership outside
sales roles. Typically, ISRs w ould need to spend at least
tw o years in this development position.
The approach a Dealer takes to hiring for the ISR position

should be decided by management before the job is
posted internally or advertising placed, because the
decision w ill influence the nine steps in the selection
process.
Some considerations:
Hire ISR as Destination Hire “ISR to PSSR” or

Position Other Field Sales Role
* Turnover in ISR position * Turnover in ISR position

must be limited – hard to acceptable – we can recruit
recruit and select ISRs and select more ISRs
* Field sales position limited * Dealership will have PSSR

at Dealership or other field sales positions
open in 1 to 2 years
* Sales management does * Sales management has

not have the time to train time to train additional ISRs
ISRs continually as needed due to
advancement
* ISR position new – Dealer * ISR position established –

looking for a lead Dealer has lead salesperson
salesperson or team leader or team leader

P age | 146
Definition of Terms: NOTES

Aptitudes, Behaviors and
Competencies
Aptitudes are innate personality characteristics of the
individual. Aptitudes influence how we behave in a given
situation and how we express ourselves. Think of the w ide
variety of people you know – everyone has a unique set of
personality characteristics that define how they interact
with others and how they would execute a certain job.
Aptitudes are expressed in a person’s behaviors, and it is

possible to describe the types of behaviors that make the
ISR and the field salesperson, like a PSSR, successful.
Typically, aptitudes are difficult to change; therefore,
aptitudes need to be selected. They can seldom be taught.
Competencies, on the other hand, are defined as a cluster

of related know ledge, attitudes, and skills that affect a
major part of a job. Competencies can be improved via
training and orientation. The Guidebook refers to
Caterpillar coursew are to improve competencies.
Often product and Dealer knowledge are deemed critical

to sales success. How ever, product and Dealer know ledge
are competencies and can be improved via training and
orientation programs.
If tw o individuals have identical aptitudes, and one has

product and Dealer know ledge and the other does not, it is
better to select the individual w ho has product and Dealer
know ledge. It is more often the case, how ever, that one
person may have a better aptitude match and the other
may have greater product and Dealer know ledge. This
poses a dilemma for the sales manager.
The individual w ith the better aptitude match w ill require

more upfront training but w ill perform better in the long
haul. The individual w ith product and Dealer know ledge w ill
get off the ground faster but w ill likely perform poorly over
time. It is almost always better to hire for the best aptitude
fit and train for competencies.

P age | 147
Behaviors of the ISR

as a Destination Position
The follow ing are the behaviors exhibited by the successful ISR in a destination position.
Aptitudes – ISR as a Destination Position
Key Sales Result Area I: Sales Opportunity Generation and Management
Behavior 1: Generating Prospects – Uses ingenuity and existing resources effectively to

generate leads
A. Uses information from customer list to establish an ongoing customer relationship

B. Records and updates customer equipment list along w ith plans to address sales
opportunities in the Customer Relationship Management system
C. Carefully profiles potential customers to determine the potential for additional parts and
service sales
D. Develops call cycles on an appropriate basis
E. Devises effective and creative ways for generating interest
F. Manages territory efficiently by scheduling customer calls based on a call plan
Behavior 2: Lead Qualification – Through a combination of solid product know ledge and
effective questioning, recognizes opportunities and acts on them
A. Builds solid relationship w ith customers to facilitate open conversation

B. Looks for opportunity to gain business (e.g., listens closely to prospective clients and
identifies w eaknesses in competitor)
C. Qualifies leads based on amount of potential revenue from customer and fit betw een
Dealer’s offerings and the customer’s equipment management strategy
D. Can apply understanding of Dealer’s product support/service offerings and the
strengths/weaknesses of competitors
E. Takes opportunities to gather information on customer perceptions about competitor
offerings and price

P age | 148
Aptitudes – ISR as a Destination Position, Continued
Key Sales Result Area II: Sales Process
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
A. Develops a clear selling objective prior to sales call

B. Prepares for resistance (pricing, competitor features, etc.)
C. Conducts persuasive comparisons of Dealer and competitor offerings based on value
D. Uses tools (e.g., sales collateral, Webex, Live Meeting, etc.) to demonstrate value to the
customer
E. Asks for business at appropriate time in sales process
F. Effectively transitions to a request for further calls
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
A. Works w ith internal departments to share information on the customer’s needs

B. Views business from the customer’s point of view
C. Probes for customer’s business needs and underlying critical success factors to potential
grow th
D. Utilizes customer machine information from the profiling process to counsel the
customer on how Dealer products can be used in new or more effective ways
E. Takes advantage of opportunities to inform customer of seasonal, special, and new
offerings
F. Based on hours, projected usage, and application, informs customer on planned
repair/maintenance offerings that result in the low est operating costs
Behavior 5: Customer Relationships – Effectively builds relationships w ith the customer that
facilitate closing the sale
A. Conducts sales calls in a courteous, professional manner

B. Establishes personal credibility w ith client as trusted advisor (e.g., customer trusts ability
and judgment)
C. Establishes clear mutual expectations w ith the customer
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

P age | 149
Aptitudes – ISR as a Destination Position, Continued
Key Sales Result Area III: Account Management
Behavior 6: Internal Relationship Management – Builds relationships w ith internal Dealer

departments and other Caterpillar contacts to ensure customers receive superior support
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
A. Serves as liaison betw een Dealer departments to ensure customer’s satisfaction

B. Takes ow nership of customer problems, even w hen not directly responsible, and follows
up to ensure resolution
C. Manages customer expectations by keeping the customer informed and explaining
complications
D. Maintains strong positive relationships w ith other members of the Dealership to ensure
that problems are resolved promptly

P age | 150
Behaviors of the ISR to

PSSR or Other Field Sales Position
The follow ing are the behaviors exhibited by the successful ISR w ho is a PSSR or other field
salesperson in training. Because the ISR position in this case is transitory, behaviors for field
sales are included, such as face-to-face sales calls and account planning.
Aptitudes – ISR to PSSR or Other Field Sales Position
Key Sales Result Area I: Sales Opportunity Generation and Management
Behavior 1: Generating Prospects – Uses ingenuity and existing resources effectively to

generate leads
A. Uses information from customer list to establish an ongoing customer relationship

B. Records and updates customer equipment list along w ith plans to address sales
opportunities in the Customer Relationship Management system
C. Carefully profiles potential customers to determine the potential for additional parts and
service sales
D. Develops call cycles on an appropriate basis
E. Devises effective and creative ways for generating interest
F. Manages territory efficiently by scheduling customer calls based on a call plan
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
A. Demonstrates persistence and persuasiveness in getting through to key customer

decision makers
B. Makes quick but persuasive argument that Dealer is not just a provider but an ally that
can help the client grow his/her business
C. Quickly persuades potential customers to “close” on further sales calls
D. Manages schedule and travel plans effectively to ensure that multiple sales calls can be
made efficiently each day and accommodates the customer
E. Develops call cycles that keep him/her in front of key customers on a regular basis
Behavior 3: Lead Qualification – Through a combination of solid product know ledge and
effective questioning, recognizes opportunities and acts on them
A. Builds solid relationships w ith customers to facilitate open conversation

B. Looks for opportunity to gain business (e.g., listens closely to prospective clients and
identifies w eaknesses in competitor)
C. Qualifies leads based on amount of potential revenue from customer and fit betw een
Dealer’s offerings and the customer’s equipment management strategy
D. Can apply understanding of Dealer’s product support/service offerings and the
strengths/weaknesses of competitors
E. Takes opportunities to gather information on customer perceptions about competitor
offerings and price

P age | 151
Aptitudes – ISR to PSSR or Other Field Sales Position, Continued
Key Sales Result Area II: Sales Process
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
A. Develops a clear selling objective prior to sales call

B. Prepares for resistance (pricing, competitor features, etc.)
C. Conducts persuasive comparisons of Dealer and competitor offerings based on value
D. Asks for business at appropriate time in sales process
E. Effectively transitions to a request for further calls
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
A. Works w ith internal departments to share information on the customer’s needs

B. Views business from the customer’s point of view
C. Probes for customer’s business needs and underlying critical success factors to potential
grow th
D. Utilizes customer machine information from the profiling process to counsel the
customer on how Dealer products can be used in new or more effective ways
E. Takes advantage of opportunities to inform customer of seasonal, special, and new
offerings
F. Based on hours, projected usage, and application, informs customer on planned
repair/maintenance offerings that result in the low est operating costs
Behavior 7: Customer Relationships – Effectively builds relationships w ith the customer that
facilitate closing the sale
A. Conducts sales calls in a courteous, professional manner

B. Establishes personal credibility w ith client as trusted advisor (e.g., customer trusts ability
and judgment)
C. Establishes clear mutual expectations w ith the customer

P age | 152
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
Key Sales Result Area III: Account Management
Behavior 8: Internal Relationship Management – Builds relationships w ith internal Dealer

departments and other Caterpillar contacts to ensure customers receive superior support
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
A. Serves as liaison betw een Dealer departments to ensure customer’s satisfaction

B. Takes ow nership of customer problems, even w hen not directly responsible, and follows
up to ensure resolution
C. Manages customer expectations by keeping the customer informed and explaining
complications
D. Maintains strong positive relationships w ith other members of the Dealership to ensure
that problems are resolved promptly

P age | 153
Step 1:
Advertising and Recruiting
Where and How to Look for

the Very Best ISRs
Present Em ployees NOTES

The first place to begin searching for an ISR is inside your
Dealership. Doing this requires view ing your employees in
a slightly different light – not just defining them by w hat
they are doing now , but thinking about their potential. The
increased morale gained by promoting from w ithin is
enormous. Your employees w ill see that there is room for
grow th in your organization and that their futures and the
Dealership’s future can be bound together. Also, when
properly matched to a new opportunity, internal hires are
generally more successful than external hires.
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
If you determine that you have to look outside your

Dealership for talent, you can also ask your employees to
help w ith the search. It is estimated that 30% of people get
their first job through friends. To make this process a bit
more interesting, some companies offer a recruiting bonus
if the person recommended is hired. The draw back is that
bad feelings might arise if an employee's friend is not
hired. It is best to be clear that all candidates w ill be given
equal consideration for the job.
Area Colleges and Trade Schools
Many companies have found that graduates from local

colleges are good sources for young, potential talent.
Trade schools and night schools should be checked, too.
These may have older, more mature students w ho may
already have the training and experience you need and

P age | 154
who are voluntarily in school to better themselves – a good NOTES

initial sign. Contact the school placement services and the
department heads.
Em ployment Agencies
While employment agencies usually charge a fee, they can

perform the preliminary screening process and save you
time. How ever, you and the agency personnel must be in
agreement regarding the job description and your
specifications for the best results. Most do the best job
they can to comply w ith your w is hes because their income
is based on getting a person a per manent job.
Customers' Em ployees
When visiting customers, you can become acquainted w ith

people you might like to have w ork for you. This method
has inherent risks, so it must be handled very carefully.
Most employers w ill not stand in the w ay when employees
have a chance to better themselves. If you decide to offer
an opportunity to a customer's employee, it is advisable to
check w ith the employer before approaching the prospect.
That w ay you won't have to sacrif ice an old customer for a
new employee.
Com petitors' Em ployees
This is a risky method of recruiting but one that is used

heavily. Was the individual successful because of the
organization’s reputation or his or her ow n skills?
If the person is in sales, are you sure he or she can bring

many accounts to your Dealership? Will he or she be able
to succeed in your company? If the person receives an
offer from another firm, w ill he or she leave you as quickly?
These are all questions to consider before hiring someone
aw ay from a competitor.
Instructors
Instructors associated w ith business schools and sales

courses, such as Dale Carnegie, are useful resources.
They are eager to place their good graduates w ith reliable
companies. People w ho take these courses are usually
motivated, energetic, and interested in improving
themselves.

P age | 155
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.
Industry Com petitors and Colleagues
While these individuals may seem to be unlikely sources,

your industry colleagues may be w illing to help you
because they may be dow nsizing or going out of business
and w ant to give a valued employee an opportunity; or
they simply don't have an opening at the time for a good
prospect.
Newspaper Ads
If properly w ritten, new spaper “Help Wanted”

ads can produce a quick supply of applicants.
These ads put your message before people
looking for new connections or those just
entering the w ork force.
One limitation of newspaper ads is that they

appear in the new spaper only under one
heading, such as “Sales.” To broaden your
search, w e suggest you reference your ads in
several sections. For example, w hen advertising
for an ISR, reference the position in both the
Sales and Service classif ied sections of the
new spaper. Another limitation is that people
wanting to change or upgrade their present jobs mostly read ads for their current field.
Consequently, some of the very best applicants might eliminate themselves because the ad
does not go out of its w ay to invite them to apply.
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.

P age | 156
Creating the Best Advertisements NOTES
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:
When to run the advertisement
Sunday is the preferred day for help w anted ads because

most people have more reading time on Sunday. But keep
in mind that you w ill also have the most competition on
Sunday, so place an ad on an off day occasionally. If your
local paper does not have a Sunday edition, the next best
issue for classif ied ads is Friday.
What type of ad – classified or display?
Classified ads in the “Help Wanted” section cost less than

display ads. You pay by the word or line, and classifieds
are a quick, relatively inexpensive w ay to get the w ord out.
Display ads are more attractive because more w hite space
and larger type can be used. The cost is higher, but
because of the image conveyed by display ads, the
investment may w ell be w orth it – particularly w hen you are
seeking candidates for professional and managerial level
positions.
How often to advertise
Rates per ad decrease as the frequency of the same ad

increases. People do not read every issue of every paper
either, so it is generally a good idea to run a series of ads
to reach the maximum number of prospects. Check w ith
your local new spapers for special combination prices.
What to say in the advertisement
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:

P age | 157
a. Run the ad using your Dealer’s name unless there NOTES

is some good reason to use a blind or box-number
only ad. Some say the blind ad keeps employees
from getting w orried and doesn't tip off competitors.
How ever, it is usually better to tell employees of
your desire to hire before the ad run because they,
and your competitors, w ill find out eventually. Using
the company's name is also good public relations. It
sends a message that your firm is grow ing and that
you are a vibrant part of the community.
21
b. Be sure to tell the reader how to respond. Most ads
request that a letter and resume be sent to your
company. This type of response gives you a
chance to review the results and make your ow n
decision on pursuing certain individuals.
c. You are bound to get calls, even if your telephone

number is not listed. Make sure that those who are
involved in receiving calls are coached on how to
capture and record the necessary information
properly and completely w hile making the applicant
feel comfortable. The last thing you w ant from your
recruitment process is to alienate good prospects.
d. Qualify the response. Use statements that w ill

screen out the unqualified or overqualified but
entice the qualified. For example, “ Must be w illing
to assume complete territory management
responsibility w ithin six months.”
e. What about compensation? Many ads w ill give

compensation ranges or potential. This serves as a
screening device and if high enough, encourages
better-qualified people to apply.

P age | 158
Examples of Advertising Copy
Inside Sales Representative (ISR)
“ISR as Destination” “ISR to PSSR”
Industrial equipment firm has Industrial equipment firm has

opening for an Inside Salesperson. opening for an Inside Salesperson
Direct selling experience helpful, with a potential for a field sales
but not necessary. We do not care position after experience. Direct
so much about what you have selling experience helpful, but not
done, but what you can do. You necessary. We do not care so
will be providing service to much about what you have done,
established customers, but must but what you can do. You will be
also be able to develop new and providing service to established
nearly new leads. Salary to start, customers, but must also be able
then generous commission with to develop new and nearly new
217 draw. Liberal benefits. Will train. leads. Salary to start, then
Expense allowance. Reply to Mr. generous commission with draw.
Jonathan Roberts, President, Liberal benefits. Will train.
Roberts Industrial Equipment, Inc., Expense allowance. Reply to Mr.
123 Main Street, Trenton, NJ Jonathan Roberts, President,
17123. Equal opportunity Roberts Industrial Equipment, Inc.,
employer. 123 Main Street, Trenton, NJ
17123. Equal opportunity
employer.

P age | 159
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.
Sell full line of industrial equipment and support
Exclusive territory - established customers but will need to

develop new business
Well-established client base
Leads furnished
Established industrial equipment firm
Steady business throughout year
Will train
Major industrial equipment lines
Competitive commission with draw
Medical benefits, retirement plan
Salary plus bonus
Salary to start, then generous commission with draw
Opportunity for advancement
Area business firm
Will train on products
Expense allowance
Equal opportunity employer (or EOE)

219
RECRU

P age | 160
NOTES
Suggestions for Internet Recruiting

When you need to act quickly, the job description that you
post on an internet job board w eb site is immediately
available for potential candidates to consider. If you need to
change or remove your ad quickly, you can do so. Finally,
the Internet never closes, so anyone can access your ad at
any hour, everyday.
You can do key w ord searches to shorten the review

process. Job banks provide you with the potential to review
hundreds and hundreds of resumes. Unlike new spapers,
which can yield lots of paper resumes, your w eb search can
electronically sort through the resumes you receive. To
maximize the appeal of your internet job posting:
 Be sure to use appropriate key w ords so the most

interested applicants can find you.
 Provide links for applicants so they can learn mor e

about your company via the Internet.

P age | 161
Step 2:
Resume Screening
Your advertising and recruiting efforts w ill likely produce a

variety of resumes. The next task is to review each NOTES
candidate’s experiences and qualifications to determine
whom you should interview . This screening step w ill save
you time.
After this introduction to screening is a tool Dealers have

used to evaluate ISR resumes (04-01). It is divided into
sales skills and technical skills. A minimum of 30 resumes
is typically used as a cut off for the next step; how ever,
your hiring environment and pool of potential candidates
may require you to consider a different number.
Think of the resume as an advertisement for the individual.

Don’t be overly impressed or swayed by the writing style or
appearance of the resume. What is contained in the
resume should be the focus. Professional w riters can
tw eak resumes, but they can’t change w hat goes in them.
When review ing resumes, look for these positive signs:
 Job experience that indicates specific

accomplishments and obstacles overcome
 Accomplishments that are listed in clear,

measurable ter ms and indicate direct, hands-
on experience
 Job changes that indicate positive career

progress rather than moves from unpleasant or
unacceptable environments
 Evidence of specific technical experience such

as licenses, certificates, or previous w ork
history

P age | 162
Look for these signs w hich may be red flags: NOTES

 Descriptions of job activities that frequently
include qualifying phrases (e.g., “Know ledge
of,” “Familiarity w ith,” “Helpful w ith the
development of”). These may indicate
exposure, not expertise.
 Information that is not organized w ell, scattered

on a page, or hard to follow
 Gaps in employ ment history or lack of dates
 Extensive trivia that is not w ork related
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 most attractive and viable candidates w ho

possess most of the essential job requirements
 The Maybes
Backup candidates w ho possess some of the

important requirements and could potentially be
developed for the job
 The Knockouts
Those candidates w ho, because of background,

salary requirements, etc., do not match the job
requirements
The screening tool can be used either for the “ISR to

PSSR” or “ISR as a Destination” position.

P age | 163
Document 04-01
ISR Resume Screening Form
Applicant: _______________________________
Technical Sales
Description Skills Skills
Experience
1. Experience working directly with

customers:
5 = Experience working with Dealer & Caterpillar customers

4 = Limited experience working with Dealer & Caterpillar customers
3 = Experience working with customers
2 = Limited experience working with customers
1 = No experience wor king with customers
2. Sales experience:
5 = Caterpillar Dealer sales experience

4 = Similar industry sales experience
3 = Sales experience
2 = Limited or tangential sales experience
1 = No sales experience
3. Telephone experience INBOUND:
5 = Telephone experience with Dealer & Caterpillar customers - INBOUND

4 = Telephone experience in similar industry - INBOUND
3 = Telephone experience - INBOUND
2 = Limited telephone experience - INBOUND
1 = No experience - INBOUND
4. Telephone experience OUTBOUND:
10 = Telephone experience with Dealer & Caterpillar customers - OUTBOUND

8 = Telephone experience in similar industry - OUTBOUND
6 = Telephone experience - OUTBOUND
4 = Limited telephone experience - OUTBOUND
1 = No experience - OUTBOUND
5. Background applicable to customers (industry/product knowledge):
10 = Superior background in ISR customer's businesses

8 = Background in ISR customer's businesses
6 = Some background in ISR customer's businesses
4 = Little background
1 = No background

P age | 164
Technical Sales
Skills Skills
6. Experience using a Customer Relationship Management system:
5 = Experience on systems similiar to Dealer's

4 = Experience on CRM system
3 = Familiar with CRM systems
2 = No CRM experience
1 = Few computer skills in general
7. Education:
5 = College degree
4 = Junior college degree
3 = Some college
2 = High school degree
1 = No degree
8. Job responsibilities:
10 = Shows extensive job history of working independently

8 = Some job history of working independently
6 = Little job history of working independently
4 = No job history of working independently
1 = No job history
9. Salary history comparisons:
5 = Salary history comparable - has earned "at risk" compensation

4 = Salary history comparable
3 = No salary history
2 = Salary history higher
1 = Salary history considerably higher
10. Overall resume evaluation:
5 = Superior candidate
4 = Great candidate
3 = Good candidate
2 = Fair candidate
1 = Poor candidate
TOTALS
GRAND TOTAL

P age | 165
Step 3:
Phone Screening
The initial telephone screening can be an extremely valuable time- NOTES

saving step. Any individual w ho fits into the “definite candidate”
category after the resumes have been screened should be
contacted over the phone. Typically, this phone call takes no more
than ten minutes.
The purpose of this call is to screen out applicants w ho are clearly

not matched to the position and to determine w hich candidates w ill
advance to face-to-face interviews.
A good technique to use during the phone screening is to ask the

ISR candidate to “sell” you on w hy he or she should be
interview ed for the position. The candidate should ask you a
series of questions about the position to deter mine your needs,
and then position him/herself as a solution.
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?
 In your previous jobs, w hat have been your principal problems?
 What is your goal in seeking a position w ith us?
 How did you come to make your present occupational choice?
 What do you know about this company and our products?
Successful candidates should be scheduled for face-to-face interviews.

P age | 166
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.
Very strong Strong Some Strong Very strong Insufficient

evidence evidence evidence evidence evidence evidence for
behavior behavior behavior behavior behavior or against
is not present is not present is present is present is present the behavior
Behavior 1: Uses ingenuity

to position him/herself as
good candidate
Behavior 2: Asks solid

questions about the position
Behavior 3: Has a smooth

telephone delivery
Behavior 4: Clearly asks to

be considered
Behavior 5: Uses knowledge

of the ISR's role to position
him/herself into Dealer's
needs
T otals:
Invite to a face-to-face interview
Do not invite to a face-to-face interview

P age | 167
Step 4:
Face-to-Face Interviews
The Face-to-Face Interview Process NOTES
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.
Now you are ready to conduct a secondary interview in

which you can thoroughly explore any issues raised as a
result of the previous steps. You have gathered a w ealth of
information. How do you keep this information from
becoming one big blur – especially as you try to compare
and contrast the candidates? Careful planning is the key.
Preparation for the Face-to-Face Interview
Have you ever thought to yourself after hiring someone

who did not w ork out, “What happened? This person w as
so good in the interview ?” Hiring interview s, if not
conducted properly, can confuse as much as they clarify.
Instead of lending insight, interview s can often become a
form of theater in w hich all of the actors are tripping over
one another, trying to put their best feet forward. To get
around this all too common mistake, planning is required –
careful, calculated planning.
Think of the employ ment interview as an in-depth

conversation with a definite purpose. Its purpose is to
obtain information that w ill help you decide w hether an
applicant should be offered a position. While the applicant
tries to present the picture he or she feels you are looking
for, you should be trying to get the true picture. Very few of
us have the interview ing skills of an investigative reporter.

P age | 168
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.
There is no substitute for preparation. An interview

without preparation is a w aste of everyone's time. You
should have:
 a thorough understanding of the job's specifications

 a clear perception of w hat the job w ill require
 a list of questions you w ould like to probe about the
individual you are interview ing
 a means to objectively grade the candidate’s
responses
As the interview er, you must go into the interview sessions

with a personal commitment to listen carefully to the
applicant's answ ers, to overcome any realized prejudices,
and to avoid phrasing questions that w ill guarantee “to-be-
expected” answers.
The best-prepared interview ers have an opening

statement in mind, a list of things that they w ant to know ,
red flags to look for, and a sense of w hat the applicant
should know . Focusing on learning about each candidate
with respect to these same items levels the playing field
and makes for a more objective interview process. In
effect, focusing on the important items can help you learn
which candidate is best matched to the job.
251
A Word about Internal vs. External Candidates
In many instances, companies conduct a different “style”

interview w ith internal candidates than external candidates.
This is usually a mistake in that the interview er feels like he
or she “knows” the candidate already and doesn’t ask
sufficient probing questions.
Therefore, the interview w ith an internal candidate

shouldn’t simply be a friendly chat betw een colleagues. It
is still an interview and should be conducted in the same
professional manner, regardless of the type of applicant.
Using the same format, questions, and process for both
internal and external candidates improves the overall hiring
quality and reduces the opportunity for an internal
candidate to claim he or she w as not fairly considered.
ACE-TO- FACE INT ERVIEW P

P age | 169
Opening the Interview NOTES
Successful interview ing depends on establishing the

proper atmosphere. Interview s should be held in a private,
neutral location w ith comfortable chairs and be free from
interruptions.
Put the applicant at ease w ith a casual start and a few

friendly remarks before getting dow n to the business at
hand.
The business at hand includes:
 Establishing expectations for the interview – that it is

best for both parties to be open and honest
throughout the process
 Review ing educational and job history
 Listening attentively to the applicant
 Jotting dow n pertinent information
 Exploring performance-directed questions
 Giving an accurate picture of the job requirements,
as w ell as an overall view of the company
 Delving into career expectations and plans
 Maintaining the candidate's self-esteem and creating
a positive impression of you and your company
 Closing the interview by establishing the next step in
the selection process
252
Logistics
253
The follow ing guidelines w ill help put the applicant at ease
and gain the most information:
A. Ensure there are no interruptions
 Use an empty office or conference room,

preferably without w indows.
 Hold all telephone calls – don’t review emails or
peruse handhelds, etc.
B. Build rapport – put the applicant at ease
 Thank the applicant for coming.

 Be polite and personable.

P age | 170
C. Communicate agenda
NOTES
 Describe the purpose of the interview .
D. Gather information about the applicant
 Begin w ith prepared questions. A good opening

question is something like, “What made you
respond to our advertisement?”
 Deter mine the individual's level of technical ability
relative to w hat is needed for the position. Keep in
mind that skills can be taught, aptitudes cannot.
 Ask open-ended questions – don't lead the
applicant to the answ er you want to hear!
 Probe w hen necessary – who, what, w hen, why,
and how ?
 Obtain closure before moving on to next topic.
(Example: When you sold for ABC Company, how
successful was your approach? What was your
technique?)
253254
E. Ask if applicant has any questions
 Stress that you must be certain there is no

misunderstanding about the position.
F. Clarify expectations of the job
 Give a brief description of the job. (Don't lead the

applicant.)
 Discuss performance metrics for the position (e.g.,
sales quotas, number of phone contacts).
G. Sell the company
 Why w ould this individual w ant to work at your

company, in your department? Don't “oversell” the
company or the position. Do convey a genuine
enthusiasm for the qualities that distinguish your
Dealership.
H. Close the interview
 Thank the applicant for his or her time.

 Explain w here you are in the interview process and
what w ill happen next.

P age | 171
Hints for Better Interviewing NOTES
The mark of a professional interview er is his or her ability

to probe deeper than the applicant's first reply to a
question so as to bring out additional facts, opinions, and
reactions that give a more definitive picture.
25455
The key to probing success is using questions that cannot
be answ ered “yes” or “no.” These are called open-ended
questions. Most of the questions you w ill use to gather
initial information about the applicant are phrased in this
way. For example, “What about this job interests you?”
In addition to open-ended questions, here are several

ways to keep the applicant talking and expanding on your
original question:
Reinforcement
Provide brief statements or simple reactions that show you

are accepting w hat the person is saying, but you'd like to
hear more. Examples: “ Uh-huh,” “I see,” “Yes,” or an
attentive look and nod of the head. These must be used
sparingly or they can inhibit further responses instead of
encouraging more comment.
Silence
Silence can be used as a signal that you w ant the person

to continue along the same line of talk. It must be
accompanied by an intent look so the applicant w ill not
confuse the silence for lack of attention. Keeping silent is
difficult for most people; most of us w ould prefer to jump in
with a comment. The silence should be long enough to
allow the applicant to relax, but short enough so as not to
cause discomfort. A reinforcement w ord or tw o, such as
“Go on,” or “Take your time; I'm sure you can think of a
good example,” can accompany it.
255
Reassurance
Nor mally, the interview er refrains from giving a personal

opinion on w hat the applicant says. An exception is making
a good comment about something the applicant said along
with a request to give more information. Example:
Candidate: “I was on the honor roll except for one

semester.”

P age | 172
Interview er: “Very good. Tell me about some of the

courses you took that might qualify you for selling.” NOTES
Here are more examples of statements that give

assurance you understand what the applicant says and
encourage him or her to continue:
“I see. Then what happened?”

“What did you do next?”
“I can see how you felt. What was the outcome?”
Control
Sometimes candidates get off track. You have asked them

about one thing and they start to talk in another direction.
When this happens, it is appropriate for the interview er to
take control and redirect the candidate.
Example:
Candidate: “… and I also traveled to San Francisco. I

thought Fisherman's Wharf was …”
Interview er: “While I find that very interesting, I want to

make sure I use our limited time today to find out the most
important information about you. Let me ask you about …”
257
Reflection
This is a popular device for interviewers. We often see it

used by TV personalities. The point is to repeat the
essence of what the person just said in a short statement,
somew hat paraphrased. Doing so w ill then allow the other
person to confirm w hat was said or to clarify it further.
Example:
Candidate: “I made my quota for ten of the last twelve

months.”
Interview er: “You were one of their better salespeople.”
Candidate: “There was only one other who had more

volume.”
Summ arization
This technique calls for careful consideration of several

items that the applicant mentions, then summarizing them
into one observation. Doing so w ill show that the
interview er understands how the applicant feels, as w ell as
hears w hat is being said. The difference betw een

P age | 173
summarization and reflection or restatement is the

summarization can start w ith phrases such as: “You feel
that …,” “You would like to …,” “You think ….” There NOTES
should be no hint of acceptance or rejection of the point
made, just understanding.
Example:
Candidate: “I want to get out of selling to home owners and

get into the commercial market. My background and
education were more business oriented.”
Interview er: “You feel that your talents would be better

utilized in selling to business people.”
257
Helpful Tips on Interviewing

The Face-to-Face Interview
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

P age | 174
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

P age | 175
Interview Questions NOTES

Document 04-03 contains interview questions the sales
manager can ask candidates during the initial and
secondary face-to-face interviews. The questions are
categorized based on behaviors you want an ISR to
exhibit. Typically, the interview er w ill ask 15 to 20
questions during an hour-long interview , far fewer than the
sum of all the questions provided.
Document 04-03 is designed to be removed from the

Guidebook and copied.
Review the questions before interview ing a candidate and

select and circle the 15 to 20 questions you feel are most
important to ask. Because you will be asking each
candidate the same core group of questions, the
evaluation w ill be objective.
If you ask the questions you have circled about a behavior

and receive responses that allow you to evaluate the
candidate on this criteria, move on to another section. If
the responses are ambiguous or unclear, ask additional
questions from the section until you can effectively
evaluate the candidate for this behavior.
The boxes below the questions contain evaluation criteria

to help you evaluate the candidate. Using the candidate’s
responses and a scale from 1 to 5, rate the candidate on
the behavior.
In the secondary interview , focus on areas that are unclear

from the first interview, or on behaviors brought into focus
because of the personality profile. If the personality profile
indicates a discrepancy from your interview evaluation, you
may w ant to ask additional questions until you are
satisfied.

P age | 176
Document 04-03
Selection Interview Questions

P age | 177
ISR
Face-to-Face Interview Summary Rater Form
Candidate: Face-to-Face
Interview Date:
Interviewer: Secondary
Interview Date:
Know ledge, Skills, and Abilities to Dem onstrate Rank
1 – Impact and Influence/Consultative Selling: Ability to persuade, convince,

influence, and/or impress others in order to get them to support a specific
agenda, make a specific kind of impression, or take a specific course of action.
2 – Relationship Building/Managing Accounts: Ability and propensity to build

and maintain friendly, reciprocal, and warm relationships or networks of
contacts with people who are, or might someday be, useful in achieving sales
and service-related goals.
3 – Customer Focus: Knowledge of principles and processe s for satisfying the

needs of internal and external customers. This includes customer needs
assessment, meeting quality standards for services, and evaluation of
customer satisfaction.
4 – Planning and Organizing: Identifies the priorities, processes, and practical

actions that are necessary to achieve an objective or idea.
5 – Achievement Motivation: Ability to achieve ever increasing levels of

performance. Involves setting high standards and challenging goals for self.
6 – Communication: Conveys ideas and information in a clear, direct and

unambiguous way. Listens, receives, and understands messages conveyed by
others.
Total – After face-to-face initial interview
Total – After secondary interview

P age | 178
Step 4: Face-to-Face Interviews

Face-to-Face Interview Questions
Note: You do not need or want to use all of the questions provided – if you did, the
interview would last far too long. You do, however, want to ask the same questions to
each candidate to ensure your ratings are accurate. Also, feel free to substitute
questions you have developed.

P age | 179
1 – Impact and Influence/Consultative Selling
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?
d)  How would you handle a customer that said we were overpriced?
e)  How would you respond to a customer that said it is difficult to deal with us because our
Dealership is too big?
Discussion indicates the candidate:
Exhibits little or no ability to Some general ability to Demonstrates clear ability

overcome obstacles. Does not generate progress in and motivation to persuade
respond well to resistance or motivating individuals to others to his/her point of
pushback when attempting to action. Can overcome some view. Drives relationships
motivate others to action. obstacles, but gets stuck with toward mutually beneficial
others. Can overcome some results. Can overcome
difficult situations to be challenges and difficult
successful. situations to be successful.
Unacceptable Acceptable Outstanding
1 2 3 4 5
Circle your overall rating of the candidate on this desired behavior.
Notes:

P age | 180
2 – Relationship Building/Managing Accounts
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?
d)  Describe to me how you establish rapport in a new relationship.
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:

P age | 181
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:

P age | 182
4 – Planning and Organizing
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:

P age | 183
5 – Achievement Motivation
Desired behavior: Demonstrates the drive and determination to achieve ever-increasing levels of
performance.
a)  Describe a challenge you had in overcoming a co-worker’s or customer’s objections. What

was the end result?
b)  Tell me about a time when you needed to be especially persistent in pursing a task. What
did you do?
c)  Tell me about a situation in which you aggressively capitalized on an opportunity and

converted something ordinary into something special.
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?
Demonstrates little or no ability Some general ability to Demonstrates ability to “ask

to overcome obstacles. Seems generate progress. Can for the sale.” Drives
stymied by resistance and overcome some obstacles, relationships toward mutually
customer blockages. but seems to get stuck with profitable results. Can
others. Can overcome some overcome challenges and
difficult situations and be difficult situations to be
successful. successful.
1 2 3 4 5
Notes:

P age | 184
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:

P age | 185
Step 5:
Assessment
Selection should alw ays focus on determining if a

candidate can demonstrate the behaviors needed to NOTES
succeed in the job.
 The resume review screened out those applicants

with too little pertinent job experience or basic job
qualifications. Keep in mind, how ever, the resume
is an ad – so don't allow yourself to be sold before
you've evaluated the candidate more thoroughly.
 The telephone screen allow ed you to probe for

basic knockout factors such as salary or location,
and to learn about any possible breaks in w ork
history. Also, you should have identified some key
experiences that you are particularly interested in
understanding and asked some basic questions to
determine the content of those experiences. For
example, if a candidate claims to have “Worked
with a team to design …” then you should have
asked about his/her specific role in the process.
 The first interview focused on gaining more insight

regarding w ork history. Going beyond the basic
information learned in the telephone screen, you
asked targeted, behavioral questions to determine
if the w ork experiences led to competency
development on the competencies that you need
for the job.
Through these steps, you should have reduced your

candidate pool dow n to a handful of candidates you see as
capable of doing the job. The question then becomes,
“How can I identify w ho is likely to be most successful in
this job?”
Once again, w e need to look at the match betw een our

candidates and the behaviors required to be successful in
the position. Of course, you can't observe behaviors
directly, so you w ill need to predict future performance
from information gathered in the selection process.

P age | 186
A very reliable and objective w ay to gather this predictive

information is w ith a valid personality profile. Such a NOTES
profile can provide you w ith an objective evaluation of each
individual's unique strengths and w eaknesses – and let
you know how these particular qualities can affect the job
to be filled.
In this w ay, you are able to supplement the information you

have gleaned in the earlier steps of the hiring process w ith
a standardized assessment of each individual under
consideration.
A personality profile – w hen combined w ith information

gathered from interviews, references, the resume, and
application form – can go a long w ay tow ard helping you
forecast whether someone can succeed in a particular
position.
Selecting a Personality Profile

How do you select a valid personality profile? Literally
hundreds of tests are on the market, ranging from score-it
yourself versions that cost a few dollars to more serious
instruments. The majority of these, however, are not job-
related, valid predictors of success. Many of them measure
interests or preferences rather than abilities. Some are
easily faked. Others w ere developed for clinical use but not
for predicting job performance.
In some cases, they may even be illegal to use because

they discriminate by age, sex, race, or other factors. That
is w hy it is very important for you to be certain that the
assessment process is valid and effective in helping to
identify the particular qualities needed to succeed on the
job.

P age | 187
The Caliper Profile is a validated assessment instrument NOTES

currently in use by many CAT Dealers, w ith Dealer history
dating back to the early 1980s. It is specifically job-related
and has a long track record of helping Dealers select high-
performing candidates for sales positions.
The Caliper instrument, coupled w ith the verbal

consultation provided on each profile administered,
provides the Dealer w ith a deeper understanding of the
aptitudes, motivations, strengths, and likely areas of
success for a particular candidate.
Personality results, in addition to being vital themselves as

part of the decision- making process, can play an important
role in structuring the secondary interview and in adding
depth to reference checks. By integrating the information
gathered in the earlier steps w ith the insights provided by
the personality profile, the interview er can better organize
the secondary interview to address potential concerns that
may truly differentiate the candidates.
For example, if the personality profile indicates that the

applicant can be rigid and opinionated, you can explore
these qualities further in the interview . In short, the
personality profile results, as w ell as all of the previous
data, form the basis for a more effective secondary
interview that can produce even more effective results.
In addition to its use in the selection process, an in-depth

personality profile can also be used to develop prescriptive
training programs designed to strengthen an individual in
areas of concern. Rather than w aste valuable training
dollars, management can use profile results to pinpoint
areas in w hich training is most needed and gear
supervision tow ard providing the specific support an
individual requires.
Similarly, a personality profile should provide important

insights on how to effectively manage each individual
currently on staff. It can provide important direction as to
who might have future promotion potential – say from an
ISR position to a PSSR role.
Therefore, once you have begun to use a personality

assessment for hiring, you can use it for a variety of
development and talent management applications. A valid
personality profile can be a vital part of an effective
selection process and can be an equally important tool in
helping to upgrade the productivity of an entire
organization.

P age | 188
Step 6:
Secondary Face-to-Face Interview
The results of the assessment, along w ith the information NOTES

gathered from the previous steps in the selection process,
should help you narrow the field to those tw o or three
candidates you believe are most qualified to take part in
the final stages of the selection process.
The next step in the selection process, the secondary

interview , serves three main purposes:
 To clarify
 To confirm
 To compare
The final interview allow s you to integrate all of the data

gathered in the previous steps of the screening process
and to use every technique available to confirm the
efficacy of the hiring decision. In other w ords, do the facts
established sufficiently support a decision to hire this
person for the job? You are specifically attempting to
validate your understanding of the candidate’s strengths
and measure any potential areas of w eakness.
293
Additional Interviewers/Panel Interviews
The secondary interview should last as long as necessary

and should include other managers or executives, w hen
appropriate. At this stage, it is not uncommon for Dealers
to have more than one person interview the candidates.
The interview ers then compare notes to make sure that all
important information w as taken into consideration. Having
more than one interview er increases the odds of
uncovering data needed to make a good hiring decision
and reduces the chance that a personal bias w ill affect the
selection process.
The interview ers can interview a candidate individually, or

a panel of three to five people can interview the candidate
at once. When utilizing a panel interview , one or two
individuals should ask the probing questions, and the
others should ask the follow -up questions. Conducting the
interview in this w ay allow s you to gauge the ability of the

P age | 189
applicant to respond to multiple people at once, deal w ith NOTES

the stress of being “on-stage,” and at the same time,
allow s each individual on the panel to observe the same
behaviors and responses.
Evaluating Each Applicant

Throughout the entire selection process, you have been
evaluating the applicants and w eighing their strengths and
limitations.
Once the secondary interviews have been completed, all

parties w ho have participated in the selection process
should convene to discuss the remaining candidates. This
discussion should take place as soon as possible after the
final set of interview s so that information remains fresh in
the minds of those involved.
During the evaluation process, objective, verifiable

information should be considered. Considerations based
on “gut feelings,” “likeability,” and the fact that “he’s alw ays
been loyal to the company” should be set aside. The
candidates should be evaluated on the factual information
at hand.
Step 7:
Job Shadow
It is recommended that the successful candidates at this NOTES

stage shadow existing ISRs. If you are hiring for the first
ISR position in your Dealership, have the candidates
shadow a PSSR in the field.
Some candidates excuse themselves from the process

once they see the job in action.
In addition to exposing the candidate to the job, shadow ing

provides you w ith an opportunity to collect more
information about the candidate from the person being
shadow ed. What questions did the candidate ask during
the shadow ing process? What opinions does the person
being shadow ed have of the candidate?

P age | 190
Step 8:
Reference Check
The purpose of checking references is to get facts about

NOTES
each applicant's w ork habits, successes, failures, and
ability to w ork w ith others. Reference checking verifies
some of the information you already have and expands
upon w hat you know . Many managers mistakenly
dow nplay the importance of reference checking. If done
properly, it can provide useful insights.
You w ill need to make the reference calls; don’t delegate

this task to an assistant. Another manager may not be
forthcoming w hen talking about a former employee to a
member of your staff. While it may be difficult to get a
reference to talk freely, if you care about the answers, you
must ask the questions.
The telephone is the most popular method of getting in

touch w ith a previous employer. A long distance call is
infinitely better than a letter. Few people w ill put negative
information in w riting, but they might be w illing to talk about
concerns, once you have established rapport.
Keep in mind that the observations and impressions you

obtain through reference checking are subjective in nature.
They are one individual's assessment of another's job
performance. Obviously, one person's standards and
criteria could easily be different from someone else's. What
might be exemplary performance to a candidate's former
boss may only be fair from your perspective. It is also
important to remember that current laws on privacy have
led some companies to regulate the information they give
pertaining to former employees. Calling the former
supervisor often has better results than calling the human
resources department.
During the reference check, ask questions that are

designed to verify the applicant's statements. Applicants
tend to slant their resumes, application forms, and
interview s to their advantage. It is expected. But some w ill
cover up or stretch the facts, so you should be on the
lookout for discrepancies.

P age | 191
Look for the stretching of dates of employ ment to cover up

periods of unemployment or jobs involving poor NOTES
references. Look for inflated income figures and claims of
higher level skills or responsibility. A common cover-up is
for the candidate to say he or she resigned, w hen in fact,
the individual w as fired or was on the verge of being fired.
If a candidate is still w orking and requests that the current

employer not be contacted, then by all means, honor this
request. Otherw ise, you w ill be putting the applicant in an
aw kw ard position if a job offer is not extended. In such
cases, try to get as much information as possible from
previous employers.
When the applicant is a student w ith little or no prior w ork

experience, ask for reference checks with school offic ials
and instructors. If the candidate has w orked part time,
check these references for input on such things as work
habits, stability, and ability to get along w ith people. It is
very important to keep the remarks made by references in
confidence. Doing so w ill ultimately reflect w ell on you.
There are several types of questions to ask that w ill bring

out the responses you need to evaluate the applicant's
past performance and personal characteristics. Of course,
you probably w on't be able to ask all of the questions you
want – particularly if the person called show s signs of
impatience. Before calling, decide on the information you
value.
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.”
When probing for follow -up information dur ing the

reference check, try to phrase the questions positively.
That is, make a positive statement that relates to the
question and then get specific. 285
CHECKING REFERENCES

P age | 192
Sample Questions NOTES

Positive Statement: Ms. X appears to be a real
perfectionist who w ants to be 100% correct and at the
same time, achieve immediate results.
Question: How did she manage tough deadlines?
Positive Statement: Mr. Y appears to be very results

oriented.
Question: Did you ever find that he was perceived as
overly demanding or pushy? Did you find that he
occasionally alienated customers?
Positive Statement: We notice that Ms. X seems very

accommodating and helpful.
Question: Did she ever have a tough time in asserting her
point of view?
Positive Statement: Mr. Y showed a propensity for taking

a creative approach to problem solving.
Question: Were there ever times when he failed to
consider the political implications of some of his business
decisions?
Evaluating References
Information received by checking references falls into tw o
categories: factual and judgmental.
Factual reference information verifies:

 Graduation dates
 Dates of employ ment
 Compensation, standing in sales, other objective
performance measures
 Whether or not the individual w as fired
Factual reference information is fairly dependable and can

be accepted in making decisions.
Judgmental reference information has to do w ith

personality traits, w ork habits, and attitudes. Since these
are only personal opinions, they must be evaluated w ith
that in mind.
Examples of judgmental information include:
 If the employee performed below par, the manager

might be thinking, “good riddance” and might be

P age | 193
reluctant to say anything negative because doing

so could hurt the person's chances of moving on. NOTES
 On the other hand, if the employee w as good, he or
she w ill leave a manager in a bind, w hich also
might affect the reference.
Ultimately, the opinions you come across through effective

reference checking have to be weighed and balanced.
Think about these references on a scale of negative,
neutral, or positive and be ready to draw your own
conclusions.
Step 9:
Offer
Congratulations! You have completed the selection NOTES

process! It is time to make an employment offer to the
successful ISR candidate.
The offer should include a compensation plan, the

Personal Business Plan, and the Dealership’s package of
benefits.
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.
As w ith any other important w ritten correspondence, your

notification should be in the form of a business letter on
company letterhead.
Write the letter as soon after the interview as you have

decided the candidate is not the right person for the job.
Creating a boilerplate letter that you can personalize and
tailor for each candidate w ill save you time.
Include the person’s name and a few details about w hat

you learned about the candidate during the interview

P age | 194
process. Kindly but clearly communicate that the candidate

NOTES
and the job are not a good fit, so the job opportunity is
closed to this individual.
Your Dealership’s reputation is critical to your ability to

attract and hire the best and brightest talent. Sending a
letter enhances the company's reputation as an efficient
and professional organization.
Onboarding
The primary goal of an onboarding program is to impact

the Dealer by getting new hires up to the minimum
expected productivity level as soon as possible. Keeping in
mind that you never get a second chance to make a first
impression, your Dealership should make absolutely sure
that new hires feel welcomed, valued, and prepared for
what lies ahead.
Each day of delay in achieving minimum productivity may

equate to the loss of thousands of dollars in revenue.
Delay to productivity can also frustrate new hires and may
lead to retention issues.
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.
Fam iliarity Breeds Contentment
While everyone may know everyone at the Dealership, the

new employee typically know s no one. Provide your new
ISR w ith “w ho’s who” documentation – photos, names, and
titles of key personnel at your Dealership. This information
can be in paper form or on your company Intranet.
Providing this information w ill speed the process of
socialization and w ill help a new ISR understand his or her
place in the organization.
Keep the New Em ployee Onboarding Procedures

Sim ple and Accessible
The employee onboarding per iod can be quite complex

and uncertain. Consider the experience from the
employee’s perspective and make an effort to make it fun,
interesting, exciting, painless, and as simple as possible. If
you do, you w ill make your new team member feel valued,
wanted, interested, and excited. By engendering these
positive emotions from the start, you make the new ISR

P age | 195
NOTES
want to do great work and add great value to your
Dealership.
One w ay to accomplish this is to post new employee

orientation schedules, materials, benefits forms, and an
extensive FAQ about the Dealership on an Intranet site
that is accessible to new hires from a link. Include the link
in a w elcome email that you send a few days prior to the
first day on the job. By providing some information in
advance, you eliminate a common source of new hire
angst and give your new ISR a better chance of starting off
on the right foot. If an Intranet site is not available for this
purpose, mail the new ISR a w elcome package that
includes this important information one w eek in advance of
the first day on the job.
This demonstrates to new employees that you are

prepared for their first day on the job – and that they
should be, too!
Don’t Make New Em ployees Learn “The Hard Way”
Every w orkplace comes w ith its own set of rules and

regulations, benefits and bonuses, nuances and traditions.
Don’t make your new employees learn these things the
hard w ay. If your company observes a “casual Friday” rule,
make sure all new employees know this before they show
up at the office on their first Friday in a neatly-pressed suit.
Every company offers a range of benefits and perks.

They’ll seem even more valuable if you make sure your
new employees know about them from the onset. Give
new employees an easy w ay to keep track of what they are
eligible for and how they can take advantage of these
benefits.
This applies to social functions as well as benefits

packages. If your company plays in a corporate softball
league, let the new ISR know right aw ay. Welcoming the
whole person, rather than just a set of job functions, will
help new hires more quickly assimilate to your corporate
culture.
Again, post policies and procedures in w riting somew here

convenient. Verbal mentions during a marathon new
employee orientation session can easily go unheard,
especially on a new ISR’s first day in the Dealership.
Similarly, a stack of papers and reminders can easily get
lost in the shuffle. An online resource that is regular ly

P age | 196
updated and alw ays accessible is the best practice w hen it NOTES
comes to information sharing.
Make New Em ployee Orientation Personal
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.

P age | 197
Selection Checklist
 Deter mine career path for ISR
 Remain an ISR, perhaps a team lead or eventual manager
OR
 PSSR, Machine Salesperson, other positions at the Dealership
 Based on career path, deter mine attr ibutes required
 Step 1: Advertising and recruiting
 Step 2: Resume screening
 Step 3: Phone interview
 Step 4: Face-to-face interview
 Step 5: Personality profile
 Step 6: Secondary interview
 Step 7: Job shadow
 Step 8: Reference check
 Step 9: Offer
 Onboarding

P age | 198

04-01 ISR Application Scoring Guidelines
04-02 Telephone Interview Rating Sheet
04-03 Selection Interview Questions
04-04 Job Description

P age | 199
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.

P age | 200
Resource Key
 Caterpillar Internal contact resource

 Product resource
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.

P age | 201
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.
Almost every ISR sales manager w ho has presented at an

ISR Dealer Exchange has emphasized the importance of
good internal orientation and communication before the
ISR begins his/her position. In this section of the
Guidebook, you w ill learn how to craft an effective internal
orientation and communication plan.
For ISRs, orientation and training are often used

interchangeably. How ever, some ISRs come from
employ ment w ithin the Dealership and their needs are
often different than those of the ISR hired from the outside.
For the purposes of this Guidebook, w e have broken the

activities of a new ISR as follow s:
Orientation Dealer-Facing
Dealer policies and procedures, tours, job shadow ing,

rental store, front parts desk, S•O•S lab, contact
management, DBS, etc.
If an ISR comes from within the Dealership (a current

employee) he/she may be familiar w ith part or all of the
Dealer policies and operational areas.

P age | 202
Training Customer-Facing NOTES

Product know ledge, sales skills, etc.
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.
If a new ISR comes fromw ithin the Dealership, he/she may be

familiar w ith your Dealership’s products and services, but this
role w ill require the ISR to look at your products and services in
a new way – from the view point of the customer.
Orienting the Dealership:

Understanding the Current Paradigm
When you begin your ISR initiative, it is possible that others
within the Dealership may have a different paradigm or
conceptual understanding of telephone sales than the concepts
presented in this Guidebook. This different paradigm may be
based on their understanding of telemarketing.
As you have learned, there are significant differences betw een

scripted, closed-dialogue telemarketing and open-dialogue, non-
scripted telephone sales. Both may have their uses w ithin the
Dealership, and although telemarketing is inappropriate for small
customer product support, some individuals may project their
telemarketing paradigm w hen the ISR initiative is introduced.
Others in the Dealership may be skeptical that an ISR can

provide coverage for customers, even if the customers are small
in size. These individuals may feel that only face-to-face
coverage is valuable.
Still others may feel that counter people can easily perform the
tasks of the ISR in their spare time.
To help you educate others in the Dealership, this section of the

Guidebook w ill present ten telephone sales concepts and
compare the ISR position w ith a PSSR, a counterperson, and a
telemarketer. Each position is unique, and each sales platform
provides advantages to match mar ket needs. As you w ill learn,
the ISR platform is matched to serve customers w ith one to six
Caterpillar machines or engines.

P age | 203
NOTES
The Telephone Selling Platform :

Telephone Sales Concepts
 Word Choice vs. Body Language and Tone of

Voice
 Building Relationships and Closing Sales
 Interest Generation
 Business Issues
 Conversations vs. Presentations
 Three Types of Questions: Business Issues,

Benefits, Sales Cycle
 Levels of Relationship
 Building Relationships – Equipment, Business,

Personal
 Short and Long Sales Cycles
 Call Structure

P age | 204
Word Choice vs. Body Language and Tone of Voice

NOTES
Compare the visual clues a salesperson receives face-to-
face as opposed to over the telephone. When you’re face-
to-face you can see the customer and observe his or her
expressions and posture; over the phone you cannot. It is
said that over one-third 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 w ord
choice. The telephone sales
representative can’t use body
language and tone of voice is limited
by the telephony equipment. To
make matters w orse, the telephone
salesperson’s customer typically has
only one ear in the conversation!
The good news is that a telephone

sales representative can contact four
or five times the number of
customers in a day for less cost than
a salesperson w ho meets customers
face-to-face. Recent studies
calculate the cost of an outbound
ISR call at around $17.00 w hile a
field sales call may be over $400.00.
The emphasis on w ord choice for the

telephone sales representative –
given there is no body language and tone of voice is
limited – underscores the importance of the ISR’s
technique. The training materials Caterpillar has
assembled to support the ISR program are extensive
because technique matters. The words an ISR chooses
and the techniques used to cultivate and grow the territory
are critically important.
Territory management skills are also paramount. The ISR

juggles perhaps 7 to 10 times the number of customers
managed by a PSSR. Although ISR customers are
typically less complex, they are far greater in number. How
the ISR uses his or her time, selects w hom to call, etc., is
critical to success.

P age | 205
Closing
Building Relationships – ISR and PSSR
Sales
The
60% 40%
Building Relationships and Closing Sales NOTES

The ISR and PSSR have tw o roles – building relationships
and closing sales. Relationships provide the Dealer and
Caterpillar w ith an annuity stream of revenue – a series of
transactions over time. Closing sales maximizes the value
of these transactions. The telemarketer and the
counterperson focus more on closing sales and less on
building relationships.
Customers purchase parts and services, and they rent and

buy new and used machines. A healthy business
relationship creates customer satisfaction, w hich leads to
larger and more frequent transactions.
The ISR’s and PSSR’s goal of producing an annuity

stream w ill only be recognized if customers are delighted
with the people w ho service their accounts, as w ell as w ith
the value they receive from the products and services they
buy from the Dealership.
While the ISR or PSSR is the first to receive a call

from a customer who has a problem, a question, or a
need for information or guidance, he/she may not
necessarily be the customer’s first call to place an
order. Customers may continue to visit the branch, or
place orders on-line or via the phone with help from a
counterperson. The fact that customers order through
others may be bit frustrating, but the PSSR’s/ISR’s
job is to build customer relationships and close sales.
And closing the sale does not necessarily mean
receiving the order – your Dealership has many ways
of receiving orders.
As relationships betw een the ISR and his/her customers

develop, the number of inbound calls the ISR receives w ill
increase. Roughly 30% of customer contacts are inbound
for the typical Caterpillar Dealer ISR w ith more than six
months experience.

P age | 206
Interest Generation NOTES

If a Dealer could generate as much revenue by mailing
customers marketing collateral as by hiring PSSRs and
ISRs, it w ould probably forgo having product support
salespeople because the costs would be substantially
low er.
One of the reasons mailing marketing collateral is not as

effective as utilizing a sales force is people are the best
means to generate interest in other people. Marketing
collateral – no matter how stimulating and thought
provoking – does not get one’s attention as well as human
interaction. Your ISRs and PSSRs can generate more
interest than their w eight in marketing collateral, providing
they know the right techniques and deploy those
techniques on the job.
Generating interest is a broader and

deeper challenge for the ISR than for the
PSSR. An ISR’s calls are shorter (2½
minutes versus 20 minutes for the PSSR),
body language can’t be used, tone of voice
is limited, and a telephone call doesn’t
allow much time for the customer to shift
his or her mental focus to the call. A
PSSR’s sales call, on the other hand,
usually begins w ith a four or five minute
exchange of non-sales pleasantries.
The counterperson does not have to

generate interest. The customer’s interest
is w hat prompted him or her to pick up the
phone or stop by the Dealership. The
telemarketer must generate interest, but this interest is
around a specific offering. The ISR and PSSR must
generate interest in a relationship.
To generate interest over the phone takes careful call

planning. In addition, the ISR must alw ays be using the
current call to establish compelling reasons to engage the
customer on future calls. The PSSR gets some credit for
just show ing up; the ISR must deliver value immediately or
the customer w ill find an excuse to end the conversation
and get off the phone.

P age | 207
Business Issues
Customer
Opportunities
Problems
Strategies
Customers have business problems, opportunities, and strategies – w e w ill call these “business
issues.”
Problems are immediate and need to be solved. An example of a customer problem is a

backhoe in need of repair.
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.
Strategies are initiatives undertaken by the customer. An example of a customer strategy

is to reduce machine dow ntime.
PSSRs and ISRs must be interested in all business issues – problems, opportunities, and
strategies. Counter people and telemarketers focus on problem solving.

P age | 208
NOTES
Conversations vs. Presentations
In field sales w hen w e are face-to-face w ith customers, w e

have the advantage of body language, w hich accounts for
over half of communication. Over the telephone, w e do not
have this advantage so we must keep the customer
continually engaged. We do this by having conversations.
Unlike a presentation w here the salesperson does most of

the talking, in a conversation, the customer w ill do most of
the talking. The salesperson w ill drive the conversation by
asking good questions.
For the ISR, dr iving conversations is a key challenge.
The PSSR must also drive conversations, but because the

PSSR is face-to-face, this task it is less taxing. The PSSR
can use body language and visual aids (such as
brochures) to prompt conversation. The environment (such
as a w ork- site) often provides conversation starters.
In the typical counterperson customer interaction, the

customer initiated the contact and therefore is prepared to
communicate his or her needs.
A telemarketer typically limits the conversation to short

questions that can be answered with a “yes” or “no” and
relies on a scripted presentation.

P age | 209
To manage conversations, ISRs and PSSRs w ill learn how NOTES

to ask three types of questions:
Business Issues – Questions to uncover a customer’s

business problems, opportunities, and strategies
Benefits – Questions to position the attributes of a product

or service as a benefit to a customer
Sales Cycle – Questions to manage the sales cycle from

beginning to end – the customer’s timeline, buying
committee, risks, and need requirements
Counter people and telemarketers focus mainly on

benefits. Because they are not typically assigned to
territories or specific groups of customers, they are less
interested in uncovering business issues.
The products and services sold by counter people and

telemarketers usually involve short sales cycles.
Telemarketers typically look for a one-call close, and most
counter sales transactions are completed in a single call.
The ISR and PSSR on the other hand, can be involved in
sales cycles that stretch for months, especially for
expensive and complex sales such as undercarriage.

P age | 210
NOTES
Building Relationships – Level of Relationship
When an ISR or PSSR begins a relationship w ith a new

customer, the buyer is w earing his or her “business hat”
and the salesperson is wearing his or her
“Caterpillar/Dealer hat.” As the relationship develops, the
buyer sw itches to a “buyer hat” and the ISR or PSSR
sw itches to a “seller hat.” At this stage the issues are the
buyer’s issues, not just those of the business. Finally, a
personal relationship is developed and the salesperson
learns to juggle organizational, functional, and personal
issues.
 Level 1: Company to Company – What can the

Caterpillar Dealership do for the customer?
 Level 2: Buyer to Seller – What can the

salesperson from the Caterpillar Dealership do for
this customer’s buyer? How can the ISR or PSSR
make this buyer’s job easier?
 Level 3: Personal – How can the ISR or PSSR

connect personally w ith the buyer?
For the most part, the telemarketer and counterperson

remain at the Level 1, focused on the business problem at
hand. The ISR and PSSR on the other hand, must
continue to build the relationship to a deeper level, w orking
to make the buyer’s job easier and to build a personal
relationship w henever possible.

P age | 211
Equipment Relationship
Business Relationship Personal Relationship
Building Relationships – Equipment, Business,

Personal NOTES
To develop a deeper relationship, an ISR or PSSR must

first learn about the customer’s equipment and how it is
used. As a representative of a Caterpillar Dealer, an ISR or
PSSR has resources available to assist customers in
reducing their operating costs and unscheduled dow ntime.
This is the value an ISR/PSSR adds to the relationship.
Because ISRs/PSSRs add value, customers w ill share

details about their businesses – including the firm’s
problems, opportunities, and strategies. A customer
understands that if the ISR/PSSR know s his business –
where he came from and w here he is going – the
ISR/PSSR and Dealer can support the customer’s fleet
more efficiently.
Finally, the value a ISR/PSSR adds to his customer’s

business and equipment fleet w ill give the ISR/PSSR the
creditability to build a personal relationship. Many
customers w ill be too busy or too remote for a personal
relationship. That’s okay – some of the largest buyers
order regularly w ithout a personal relationship.

P age | 212
Closing Sales – Sales Cycles

NOTES
Short Sales Cycles
“Problems” tend to have short sales cycles because of the

urgent nature of problem solving. When solving a problem,
many customers w ill buy immediately – typically from a
vendor that has a good relationship w ith their company.
Telemarketers and counter people concentrate on short

sales cycles.
Skid Steer Cylinder Sales Cycle
Price/Delivery
Purchase
Long Sales Cycle
“Opportunities” and “strategies” have longer sales cycles.

Planning is involved and the customer w ill typically go
through more steps before buying. ISRs and PSSRs have
many sales w ith long sales cycles.
S•O•S Sales Cycle
Inquiry
Literature
Visit to the
Oil Lab
Quotation
Purchase

P age | 213
Call Opening
Question 2
Question…
Question 1
Call Close
Closing Sales – Call Structure NOTES

Prior to any given sales call, an ISR or PSSR can plan
his/her call opening (w hat it is that w ill compel the
customer to listen), develop the questions to ask during the
call, and identify opportunities to close. The actual path of
the call w ill vary depending on the answ ers the ISR/PSSR
receives from the customer and the direction the customer
would like to take the call.
Very few sales calls go exactly as planned, but w ithout a

map of the call’s objectives, it is unlikely the ISR/PSSR w ill
achieve his/her goal.
ISRs/PSSRs are encouraged to close something on each

call. On some calls, the ISR/PSSR w ill ask for the order
and close a sale. On most calls, the ISR/PSSR w ill close
the customer on his or her time – time to talk in the future
about the customer’s equipment and business.
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.
Even though the ISR/PSSR call has objectives and is

planned, the conversation is basically open dialogue. As
the diagram shows, the conversation can w ander based on
the customer’s desires. A telemarketer, on the other hand,
is more tightly scripted. The call is narrow ly defined and
controlled. Because the customer initiated the conversation
with the counterperson, the conversation follow s the
customer’s call objective.

P age | 214
Operational Differences between Field Sales (PSSR)

and an ISR
Key
X = Different √= Sim ilar
√√= Close √√√= Operationally the same
X - Word Choice vs. Body Language and Tone of Voice
√√√- Building Relationships and Closing Sales
√- Interest Generation
√√√- Business Issues
√- Conversations vs. Presentations
√√√- Three Types of Questions: Business Issues, Benefits, Sales Cycle
√√√- Levels of Relationship
√√√- Building Relationships – Equipment, Business, Personal
√√√- Short and Long Sales Cycles
√√- Call Structure

P age | 215
ISR and PSSR

Notes: Largest difference betw een PSSR and ISR. ISR does not have the advantage of
body language and tone of voice is limited by telephony equipment. The ISR must focus
on word choice, making his/her technique critical.
Building Relationships and Closing Sales
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

Notes: PSSR can engage the customer using visual mater ials and body language. ISR
must use w ord choice and good questioning techniques to engage the customer.
Three Types of Questions: Business Issues, Benefits, Sales Cycle
Levels of Relationship
Building Relationships – Equipment, Business, Personal
Short and Long Sales Cycles
Call Structure
Notes: Similar, but PSSR conversations tend to be less structured – more situational.
PSSR call can involve “show me” demonstrations and inspections.

P age | 216
Operational Differences between Counterperson and ISR
Key
√- Word Choice vs. Body Language and Tone of Voice
√- Building Relationships and Closing Sales
X - Interest Generation
√- Business Issues
√- Conversations vs. Presentations
√- Three Types of Questions: Business Issues, Benefits, Sales Cycle
X - Levels of Relationship
√- Building Relationships – Equipment, Business, Personal
√√- Short and Long Sales Cycles
X- Call Structure

P age | 217
ISR and Counterperson

Notes: Up to 50% of the calls a Counterperson receives are over the phone. In these
calls, the Counterperson has the same challenge as the ISR. The other calls are face-to-
face, so body language and tone of voice may be used effectively.

Notes: The Counterperson builds relationships w hen possible, but it is not a major part
of the job. The Counterperson is asked to close sales, but these are generally sales
where the customer has expressed an interest to buy.
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
Call Structure
Notes: The customer drives the call structure more than the Counterperson.

P age | 218
Operational Differences between Telemarketing and ISR
Key
√√√- Word Choice vs. Body Language and Tone of Voice
X - Building Relationships and Closing Sales
X - Interest Generation
√- Business Issues
X - Conversations vs. Presentations
X - Three Types of Questions: Business Issues, Benefits, Sales Cycle
X - Levels of Relationship
X - Building Relationships – Equipment, Business, Personal
X - Short and Long Sales Cycles
X - Call Structure

P age | 219
ISR and Telem arketing

Notes: The telemar keter and ISR must both primarily use w ord choice; body language is
non-existent, and tone of voice is limited by the telephony equipment.

Notes: The telemar keter is interested in closing sales; the ISR is interested in building
relationships (60% of the job) and closing sales (40% of the job).
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.

Notes: The telemarketer uses a closed-dialogue presentation; the ISR is interested in an
open-dialogue conversation.

Notes: The telemarketer focuses on benefits around a product or service. The ISR must
manage all three.

Notes: The telemarketer focuses on short sales cycles (one call closes.) The ISR can
have sales cycles that stretch over months.
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.

P age | 220
Internal Communication NOTES
One of the major challenges for the manager w ho is

implementing an ISR program is to communicate w ith all
involved. A short list of those w ho should be contacted
includes:
 Branch locations
 Counter personnel
 Service dispatchers, lead hands, and supervisors
 PSSRs
 Machine salespeople
 Other service areas – hydraulics, undercarriage, etc.
 Inbound receptionists
 Marketing
 Customer service
The old adage w ithin business is “Communication is a lot

like air; w hen it’s all around you, you don’t notice. But if it’s
gone, it’s all that matters.” In other w ords, you need to
communicate and you need to do it w ell.
Many managers discuss the ISR program individually w ith

each important stakeholder before hire and then bring the
new ISR around after hire. Every Dealer has its ow n culture
and situation, but special attention should be given to those
who have a financial stake in the program, including other
salespeople and the branches. Implementing an ISR
program may impact them positively, but their initial reaction
may not be so positive.
PSSR’s may w orry about the loss of territory or customers –

even though they may have rarely called on the customer
with 1 to 6 Caterpillar machines. Machine salespeople may
worry about confusing the customer.
You know your Dealership, the players, and their potential

concerns. Create a communication plan w hich gets the
word out and builds success.

P age | 221
Key Principles of Salesperson Performance – Role Perceptions
Role Perceptions
Aptitude
Skill Level
Moti vation Level
During orientation the ISR receives a big dose of role

NOTES
perception – the requirements of the job. It is critically
important to establish the expectations and requirements
of the job during orientation to avoid concerns and
problems later. Remember the old phrase “You never get a
second chance to create a first impression”? With an ISR,
you never get a second chance to define the job.
Role perception is the expectations of the job.
As a manager, you have expectations in ter ms of

activities, behaviors, and results. Activities for an ISR
include the number of telephone calls during a specific
period of time and other measurable. This Guidebook
includes a complete list of typical ISR activities and their
measurements.
Behaviors include w hat the ISR says to the customer

during the sales interview – how he or she handles the
call.
Results include sales.
We w ant results from our ISRs – w e are not paying for

phone calls and sales interviews. But results are a lagging
indicator. Results happen long after activities are
performed and behaviors are exhibited.
Because results (sales) are the result of activities and

behaviors, the focus during orientation should be on
activities and behaviors. Results typically become relevant
only after the orientation period is over.

P age | 222
After completing the early phases of orientation, most ISRs NOTES

are overwhelmed w ith the complexity of the job, given the
hundreds of products and services offered by the Dealer
This can often lead to call reluctance because the new ISR
is afraid the customer w ill ask a question that he or she
can’t answ er.
During the orientation phase, reinforce the ISR’s role

perception by introducing him or her to the experts in your
Dealership w ho are available to address customer needs.
Encourage your ISRs to memorize the phrase “ I’m a
member of a team w ho can …” If a customer asks a
question the ISR can’t answ er, the ISR can tell the
customer he/she is a member of a talented and proactive
team and w ill find the answ er. If the need is immediate, the
ISR can transfer the customer to someone w ho can help
right aw ay.
Customers like the deference to experts. They envision the

ISR taking the problem up a mountain top populated w ith
engineers w earing w hite coats and pocket protectors, and
asking for assistance in solving the customer’s problem.
Because Caterpillar is a manufacturer, and a reputable
one, it has implied credibility – and as Caterpillar ’s
representative, your ISR can bask in this glow .
The typical ISR customer w ith one to six machines has

less complex problems than larger ow ners, so as the ISR
learns and grows in the position, he/she w ill need to defer
to other people less often.
During orientation, make sure the ISR is performing the

activities on the phone, coach for the desired behaviors
during the sales interviews, and the results will come –
right on schedule.
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.

P age | 223
Orientation involves three phases:

NOTES
First 25 Working Days
Initially you w ant to acclimate new ISRs to the Dealership

and the various departmental functions, w hile helping them
build relationships w ith people w ho will assist them in their
selling efforts in the future. By introducing new ISRs to the
Dealer support functions and personnel, they w ill learn
about each of the functional areas and develop
relationships w ith the people w ho w ill be supporting their
selling efforts. This initial orientation w ill allow an ISR to
begin to contact and qualify customers in the early stages
of his/her new role. A sample Dealer Orientation Plan (05-
02) is included in the Document section of this tab. An ISR
with experience in the Dealership may be able to skip
some of the steps outlined in the plan. A pre-qualification
document for ISRs w ith Dealership experience is also
included in the Document section (05-01).
Whichever schedule you use (5-01 or 5-02 depending on

the ISR’s experience), you should let the ISR call each
department internally and schedule a time to meet. After
all, the ISR is in telephone sales – this should be an easy
task. Ask the ISR to complete a departmental introduction
sheet (5-08) and keep it for future reference.
You may w ish to review these w ith the ISR.
An Introductory Email template (5-09) is
included for your reference.
Another task to assign to new ISRs is to

create a “Market Evaluation” of their territory.
This evaluation should contain a summary of
the industry, events, and business in this
geography. Typically, ISRs can glean this
information from the Internet and internal
Dealer resources.
25 Working Days – 12 m onths
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.

P age | 224
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
Document 05-03 contains sample questions for the ISR to

ask customers. It is provided under orientation to
familiarize the new ISR w ith the types of inquiries he/she
will make to customers. Many more questions are found in
the Caterpillar training courses.
Call Outlines
Although the ISR position is open-dialogue w ithout a script,

call outlines can be helpful by providing a starting place for
the ISR’s conversations. A few call outlines are provided
under the orientation tab. You may w ish to share these
outlines w ith the ISR during orientation. Additional
information about call outlines can be found in the
Caterpillar training courses.

P age | 225
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.
Call Outline – Initial call to customers. Dealership has sent an announcement

(Document 05-05)
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.
Call Outline – Customers who m ay be interested in preventive m aintenance services

(Document 05-06)
This call outline is used to contact customers to generate interest in Dealer preventive
maintenance services.
Call Outline – Tem plate

(Document 05-07)
Use this document to create additional call outlines.
Notes

P age | 226
Orientation Checklist
 New hire?
Use Document 05-02 New Hire ISR Orientation & Training – modify to fit your
Dealership
 Hire from w ithin the Dealership?
Use Document 05-01 New ISR – Dealer Experienced – customize the orientation to
cover gaps
 Orientation for first 25 w orking days (5 weeks)
 Plan
 Execute
 Orientation for first year
 Plan
 Execute
 Orientation for second year
 Plan
 Execute

P age | 227

05-01 New ISR Orientation (use w ith 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. Dealership has not sent an announcement
05-05 Call Outline: Initial Call to Customers. Dealership has sent an announcement
05-06 Call Outline: Customers w ho may be interested in preventive maintenance

services
05-07 Call Outline Template
05-08 Departmental Observation For m for New ISR
05-09 Introductory Email

P age | 228
New ISR Orientation – Dealer Experienced Document 05-01
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.
Number Familiarity with this Department/Product Group Department/Product Group
1 None Some Very Familiar Worked There/With Front Parts Desk

   
2 None Some Very Familiar Worked There/With Hose Room

   
3 None Some Very Familiar Worked There/With Undercarriage

   
4 None Some Very Familiar Worked There/With GET

   
5 None Some Very Familiar Worked There/With Hydraulics

   
6 None Some Very Familiar Worked There/With Engine/Drive Train

   
7 None Some Very Familiar Worked There/With Fluids and Filters

   
8 None Some Very Familiar Worked There/With Used Equipment

   
9 None Some Very Familiar Worked There/With Power Systems

   
10 None Some Very Familiar Worked There/With Rental Store

   
11 None Some Very Familiar Worked There/With S•O•S

   

P age | 229
Document 05-02
ISR: ________________________
New Hire ISR Orientation & Training
Document
25-Day Plan/5 Weeks
 Task Suggested Person Day Length

and Location
Welcome, Job Shadow, New

Hire Procedures, Media Library Day 1 8 Hours
Building Customer Self-Directed

Relationships Over the Phone Learning at Day 2 2 Hours w/exercises
Course – Module 1 Workstation
Human Resource Orientation 2 Hours
Front Parts Desk (Walk-in) and Parts Desk

Customer Support Overview 4 Hours
Building Customer Self-Directed Day 3 2 Hours w/exercises

Relationships Over the Phone Learning at
Debrief With Sales Manager on .5 Hours

Building Customer
Relationships Over the Phone
Course – Module 1
Front Parts Desk (Walk-in) and Parts Desk

Customer Support Overview 5.5 Hours
(Continued)

P age | 230
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location

Debrief With Sales Manager on 1 Hour

Building Customer
Course – Module 2
Hose Room Tour and Hose Room 5 Hours

Discussion


Building Customer
Course – Module 3
Hose Room Tour and Hose Room 5.5 Hours

Discussion (Continued)

P age | 231
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location


Building Customer
Course – Module 4
Undercarriage and GET 3.25 Hours
Hydraulics Overview 2 Hours


Building Customer
Course – Module 5
Engine and Drive Train 2.5 Hours

Overview
Fluids and Filters Overview 3 Hours

P age | 232
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location

Debrief With Sales Manager on 1 Hour

Building Customer
Course – Module 6
Used Equipment Overview 5 Hours


Building Customer
Course – Module 7
Used Equipment Review 5.5 Hours

(Continued)

P age | 233
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location
Debrief With Sales Manager on Day 10 .5 Hours

Building Customer
Course – Module 8
Used Equipment Review 5.5 Hours

(Continued)
Parts Pro Self-Directed 2 Hours

Undercarriage A Learning at
Workstation
Filter Cleaning Plant CSC Tour Day 11 8 Hours
Power Systems Overview Day 12 6 Hours

Drive Train Learning at
Workstation

P age | 234
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location
Cat Rental Store Overview Day 13 2 Hours

Hydraulics A Learning at
Workstation
Equipment Rentals Overview 4 Hours
Used Parts Overview Day 14 8 Hours
Used Parts Overview Day 15 8 Hours
CRC Tour (Engine, Hydraulic, Day 16 8 Hours

Drive Train, Undercarriage,
Turbo, etc.)

Turbo, etc.)

Turbo, etc.)

P age | 235
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location
Telephone Etiquette Training Day 19 4 Hours

Hydraulics B Learning at
Workstation

Remanufactured Products Learning at
Workstation
Travel with PSSR Day 20 8 Hours
Travel with PSSR Day 21 8 Hours
Parts Pro Self-Directed Day 22 2 Hours

Preventative Maintenance and Learning at
General Usage Products Workstation
S•O•S Lab Tour 4 Hours

Engine Basic and Parts Learning at
Workstation

P age | 236
Document 05-02
ISR: ________________________
25-Day Plan/5 Weeks

and Location
Sales Call, Roll Play, Set up Day 23 8 Hours

Office, Intranet, Infocast, DBS,
CRM
Dealer Corporate Overview Day 24 4 Hours

and Safety Orientation
Test Drive Equipment 4 Hours

(Optional)
Parts Pro Self-Directed Day 25 2 Hours

Ground Engaging Tools Learning at
Workstation
Prepare for Work, Review Self-Directed 6 Hours

Materials, Prepare Beginning Learning at
Call Lists, Review Call Outlines Workstation

P age | 237
Document 05-03
Sample Questions for ISRs to Use
 Tell me a little about your business.
 What kind of w ork do you do?

o Full time/part time
o Year round
 How was your business in the past year?
 How is this year’s business shaping up?
 How many hours do you put on your engines annually?
 What engines do you currently have?
 How many engines do you currently have?
 Do you do your ow n maintenance? What do you hire out?
 How often are the engines maintained?
 Do you do oil sampling?

o A few tests for water, metal, coolant
o Snapshot of your engine

P age | 238
Call Outline
Document 05-04
Situation: INITIAL CALL TO CUSTOMERS

Dealership has not sent an announcement.
 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>.”

service, I have been designated to support you and your products and service needs. My job
includes keeping you up to date about the latest products that have a potential for positive
impact on your equipment fleet, and also to let you know of any promotions w e are offering.”
contact you?
Close:
I’ll give you a call back if we have a special or promotion of interest to your business, or if I spot
service.

P age | 239
Call Outline
Document 05-05
Situation: INITIAL CALL TO CUSTOMERS

Dealership has sent an announcement.
 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.”

service, I have been designated to support you and your products and service needs. My job
includes keeping you up to date about the latest products that have a potential for positive
impact on your equipment fleet, and also to let you know of any promotions w e are offering.”
contact you?
Close:
I’ll give you a call back if we have a special or promotion of interest to your business, or if I spot
service.

P age | 240
Call Outline
Document 05-06
Situation: CUSTOMERS WHO MAY BE INTERESTED IN

PREV ENTIV E MAINTENA NCE SERV ICES
 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.”
 Compelling Reason to Call – “ Caterpillar and our Dealership have developed a

preventive maintenance program called S•O• S. Oil samples are taken regularly to deter mine the
correct oil change intervals and to diagnose any potential engine problems. If you have a
moment, I’d like to ask you a couple of questions to see if S•O•S is something w e should
investigate for your business.”
Tell me how you determine when to change the oil in your machines.
Describe to me how long you typically keep your equipment.
Is resale value important to you?
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?
Typical Next Steps: Send S•O•S literature, perhaps a quotation.
Close:
<literature > May I prepare literature on S•O•S for your review and get it off to you today?
<quotation> May I prepare a quotation for your review?

P age | 241
Call Outline
Document 05-07
Situation:
___________________________________________________
 Smile!
 Verify
 Clarify
 Compelling Reason to Call
Typical Next Steps:
Close:

P age | 242
This page left intentionally blank.

P age | 243
Inside Sales Representative

Departmental Observation Form
Document 05-08
ISR: ________________________
Department Observed: ___________________ Date: ______________
What w ork is performed for customers in this department?
How will I communicate w ith this department?
How will my customers communicate w ith this department (through me, directly to the
department)?

P age | 244
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

P age | 245
Introductory Email
Document 05-09
This document is an email template to notify departments a new ISR w ill be contacting them.
Sent: //ISR Sales Manager//
To: //Department Heads//
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.
Thanking you in advance.

P age | 246
Resource Key

Orientation for the Sales Manager
 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.

P age | 247
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.
Picture yourself in a conference room w ith a salesperson

that is making a presentation. The salesperson is using a
Pow erPoint projection to accompany his talk and is
gesturing effectively. The lights are perhaps dimmed to
focus the eyes on the brighter Pow erPoints. Props adorn
the conference room table. The buyers are attentive and
focused. The salesperson is wearing a crisp dress shirt
with his company logo emblazoned on the front. He
watches the body language of the buyers, studies the
nuances of their know ing glances, and observes the
deference to the senior members of the buying committee.

P age | 248
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.
In w hich situation is communication easier? These are the

different w orlds of the field salesperson and the telephone
salesperson.
The loss of body language for the telephone salesperson

dramatically affects communication. It places a great deal
of emphasis on w ord choice. Over 35% of the brain is
dedicated to processing visual images – the portion of the
brain the field salesperson naturally engages because he
is present. Telephone salespeople must create visual
images w ith w ords. They must tell engaging stories and
use creative phrasing like “ Please paint a picture for me” or
“Describe to me how .”
Have you ever seen photographs of families in the 1920s,

30s, and 40s listening to a radio program? Before the
commercialization of television, netw ork radio w as big
entertainment. Whether it w as Jack Armstrong, the All
American Boy or Mystery Theater, families of this era
would gather around the radio to listen to their favorite
programs. It is amazing how they sat mesmerized,
watching the radio as the story w as told. You’d think by the
end of the program they’d be able to draw every wood
grain in the radio cabinet as a result of staring at it for so
long, but that w asn’t so. Why? They w eren’t bored. They
were creating the visual image of the story in their minds.
This is w hat your ISR must do – create visual images. The
ISR is the radio; the field salesperson is the television.
There are other differences between field sales and phone

sales. Rapport building comes more naturally to the field
salesperson. Because he is in the customer ’s
environment, he is stimulated by w hat he sees and hears
at the customer’s facility. The telephone salesperson does
not have this advantage. He remains in his office or cubicle
and must mentally project himself to the customer’s place
of business.
A field salesperson’s first meeting w ith a customer typically

lasts ten to fifteen minutes. Phone logs have show n the
first telephone call for the ISR averages tw o to three
minutes.

P age | 249
At your Caterpillar Dealership, you offer an extensive

portfolio of products and services. To explain the offerings NOTES
effectively takes time, but the telephone salesperson can
only use 30 to 45 seconds to explain before the customer
needs to be re-engaged. In field sales, the suggested time
frame for re-engaging the customer is every five minutes.
These and other differences are caused by the limitations

of the telephone as a communications device. On the other
hand, w hile most field sales representatives see three to
five customers in a day; the ISR w ill typically have
conversations with fifteen. If the ISR can conquer the
limitations of the telephone, it can be a pow erful sales tool
and provide support and assistance to a variety of
customers you can’t afford to cover in the field.
This is w here you come in. As a coach and manager of the

ISR’s training, you w ill provide leadership and guidance for
the ISR as he/she learns how to use the telephone for
sales. You w ill help each ISR through a structured series of
steps designed to develop skills and good habits.
Are salespeople born or made? Good salespeople are

both. This section is about your role as a sales manager in
helping your ISRs be the very best.

P age | 250
Key Principles of Salesperson Performance – Skill Level
Role Perceptions
Aptitude
Skill Le vel
Moti vation Level
Training is designed to raise a salesperson’s skill level and

directly influence performance. Caterpillar has a w ide NOTES
variety of resources to assist you in training your new ISR.
Studies show human beings learn 80% of w hat they know

from visual clues. Many people learn best from w hat they
see. Unfortunately, the ISR needs to learn about
customers from audio clues – human conversations over
the telephone. Because of this, Caterpillar’s introductory
course for ISRs, Building Customer Relationships Over the
Phone, is primar ily an audio course. It includes over 3
hours of customer/ISR dialogue to teach the new ISR how
to capture audio clues from a customer conversation.
Training a new ISR w ill consist of sales skills, product

knowledge, and technical skills. Sales skills include how
to conduct a sales interview and how to run a telephone
sales territory. Product know ledge includes the massive
Caterpillar and Dealer product and service offerings which
are of interest to the ISR’s customer base. Technical skills
include the ability to use the Dealer’s contact management
system and other electronic resources, as w ell as how to
place orders and literature requests.
The training guidelines for new ISRs typically involve

learning sales skills and product know ledge concurrently.
Product know ledge w ithout a customer context is empty,
and sales skills development w ithout know ledge of w hat
you w ill be selling is challenging. To this end, the agendas
found in this section promote concurrent know ledge and
skill development in these areas.

P age | 251
If a new ISR is in a “green field” position – in other w ords,

NOTES
contacting customers w ho have not been contacted before
– the customer’s expectations for product know ledge w ill
be limited. The first calls are likely to be introductory and
database cleaning calls that include a verification of the
customer’s equipment.
If the new ISR is taking over a territory from a previous

ISR, customer expectations w ill be higher. The customer
will be losing a relationship and w ill probably benchmark
the new ISR’s performance against the more experienced
former representative. If this is the case, you w ill want to
insist on greater product know ledge before the new ISR
takes to the phone.
An excellent w ay to build product know ledge and sales

skills is to have a new ISR shadow an existing ISR. Ask
the shadow ing ISR to take notes on the calls and then
debrief w ith him or her on w hat w as learned. It is especially
helpful for the ISR to shadow a sequence of similar calls
and then make the same type of call to accounts w ithin
his/her ow n territory. Targeted calls w ith a purpose require
less product know ledge than general calls.
Training w ill be ongoing for as long as an ISR is in the

position. Many w orld-class Dealers set aside one day per
week for training. This may include additional product
know ledge, or shadow ing in the field w ith PSSRs or other
salespeople.
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.

P age | 252
It is recommended that a shadow ing session be scheduled

for one hour and that the sales manager debrief the ISR NOTES
once the observations are completed.
If this is the first ISR at the Dealership, a good substitute to

shadow ing an ISR on the phone is to shadow a PSSR in the field
as sales calls are made.
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.
The first ISR course is a self-directed audio program, Building

Customer Relationships Over the Phone. See (06-01) for
complete details. This course, w hic h can be conducted at the
ISR’s ow n pace, is intended to be used during the orientation
phase w ith new ISRs and as a resource tool for existing ISRs.
The second ISR course, High-Impact Telephone Sales, is

facilitator-led. This course is intended for the ISR w ith roughly 6
month’s experience w ho has completed the self-directed learning
program, Building Customer Relationships Over the Phone. See
document (06-04) for complete details on High-Impact Telephone
Sales.
The first sales manager course is a self-directed audio program

contained w ithin the Building Customer Relationships Over the
Phone course. Within this audio program, the sales manager w ill
learn how to successfully coach an ISR. The program includes
documents a manager can use to prepare for and deliver a
coaching session.
The second sales manager course is Leading High-Impact Sales,

a tw o-day facilitator-led training session. During this session, the
manager w ill learn how to select, train, manage, coach, and lead
an ISR or an ISR team. See (06-05) for complete details on
Leading High-Impact Sales.
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:
 Counselor Sales Person (CSP)

 Managing Sales Performance (MSP)

P age | 253
 Exploring the Practical Applications of PTOS

 Understanding Marketing Planning and NOTES
Tracking
 Sales Funnel Management
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.
For the Dealer, the message board:
 Helps implement your ISR strategy

 Supports problem solving for your ISR
 Builds know ledge competencies
 Cross-fertilizes ideas and best-practices
For the community of ISRs, the message board:
 Builds a common language, method, and model

 Embeds know ledge in a larger population
 Increases access to expertise
And for the individual ISR, the message board:
 Assists with performing the tasks of the job

 Builds a sense of identity
 Helps keep know ledge current
 Challenges and provides opportunities to
contribute
 Creates a sense of being part of a team
Access to the message board is restricted for

confidentiality reasons. To gain entry for yourself or your
ISRs, call Jennifer Geist or John Dieseth at Business
Performance Group, 515.440.4722.

P age | 254
Training Checklist
 Design product know ledge curriculum based upon w hat the ISR w ill be selling for your
Dealership
 Arrange for shadowing and observation:
 Prepare shadow ing form (06-02)
 If you have other ISRs, arrange for shadow ing time w ith them
 PSSR shadow ing
 Obtain a copy of the Caterpillar self-directed learning course, Building Customer

 Attend Leading High-Impact Sales for Caterpillar Dealer sales managers
 Provide access to the on-line Caterpillar ISR Message Board
 At six months, register the ISR for the Caterpillar inter mediate program, High-Impact
Telephone Sales

P age | 255

06-01 Synopsis and Table of Contents for the self-directed training program, Building
Customer Relationships Over the Phone
06-02 Shadow ing Observation For m
06-03 First Year Training Plan
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

P age | 256
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.

P age | 257
Table of Contents
Building Customer Relationships Over the Phone Document 06-01
Description CD Track Participant Guide

Page
Welcome to the Course 3
Getting Started 6
Symbols in the Participant Guide 7
Module 1 Module 1 8
Business Problems and Opportunities 1.09 – 1.10 20

Exercises Parts 1 and 2
Defining Sales and Sales Success 1.14 26
Module 2 Module 2 30
Exercise: Solution – Advantage – 2.05 40

Benefit
Collecting Reference Stories at Your 2.09 46

Dealership
Compelling Reason to Call Exercise 3.03 56
Qualification Exercise 3.06 66
Probing for Acti ve Needs Exercise 4.07 85

P age | 258
Description CD Track Participant Guide

Page
Informal Presentation Exercise 5.03 103
Formal Presentation Exercise 5.06 111
Objection Exercises 1 – 4 6.07 – 6.10 138
Cross-Selling and Up-Selling Exercise 6.13 145
Closing Exercise 7.09 167
Time Management of Your Work Day 8.01 177
Calling Grid 8.01 178
Note-Taking Exercise 8.03 181

P age | 259
Shadowing Observation Form

Document 06-02
ISR Observer: ________________________
ISR Shadowed: _______________________ Date: ______________
Customer segment(s):  Do-It-Myself  Work-With-Me  Do-It-For-Me
How do I know?
Customer facts:
What did the customer(s) articulate?
Dealer products and/or services:
Solution/Benefits:

P age | 260
How did the ISR open the call? What was compelling for the customer?
Open-ended questions used by the ISR:
Closed-ended questions used by the ISR:
Close used/Next steps:

P age | 261
First Year Training Plan Document 06-03
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
ISR Building Customer Relationships Over the Phone [ PECJ0031 ] – This

Caterpillar Dealer specific course is a self-directed program that consists of 8 audio CDs
 Audio component
o 8½ hours running time (behavior modeling and narration)
o 3 hours of progressive simulated phone conversations between an ISR
and Dealer Customers – DIM/WWM/DIFM – dialogue provides customer
relationship development from first call to sale
o Narration guides participant through the material
o CDs are segmented for use by the ISR as reference tools and the sales
manager as a coaching tools
 190 page Participant Guide (Sales Manual)
o Includes 16 exercises, performance support call outlines, and reference
materials
 Course requires 16 hours to complete
ISR High-Impact Telephone Sales – This 1½ day facilitator-led course is an

intermediate level course intended for ISRs with six months or more experience who
have completed the self-directed learning course, Building Customer Relationships
Over the Phone.
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.

P age | 262
Dealer Capabilities NOTES
 Caterpillar & Allied Product Line Offerings

 Prime Product Sales Organization & Offerings
 Rental Services Organization & Offerings
 Power Systems Organization & Offerings
 Service Marketing /Capabilities – specific to Dealership
 Parts Procurement
 Logistics Capabilities
 Allied Product Services
 Reman and Parts Exchange
 Condition Monitoring Capabilities
 Fluid Analysis/SOS Interpretation
 Customer Support Agreements
 Financing Offerings & Capabilities

P age | 263
High-Impact Telephone Sales Document 06-04

1½ - Day/Facilitator-Led
Intermediate Level
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.
The High-Impact Telephone Sales Model is used:
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.

P age | 264
High-Impact
Telephone Sales
Intermediate Level
Table of Contents
Description Module
Welcome to High-Impact Telephone Sales
Step 1: Planning the Call
Solutions – Advantages – Benefits 1-A
Reference Stories 1-B
Business Issues: Problems, Opportunities, Strategies 1-C
Step 2: Making the Call
Whom to Call 2-A
Territory Management 2-B
Compelling Reason to Call 2-C
Cold Calls 2-D
ISR First Calls 2-E
Marketing Calls 2-F

P age | 265
Table of Contents
Description Module
Sales Cycle Calls 2-G
Money Calls 2-H
Opening the Call 2-I
Risk 2-J
Timeline 2-K
Probing Questions 2-L
Gatekeepers 2-M
Call Outlines 2-N
Step 3: Communicating the Solution
Informal Presentations 3-A
Formal Presentations 3-B
Step 4: Overcoming Objections
ACT: Acknowledge – Clarify and Respond – Transition 4-A
8 Different Common Objections 4-B
Using Objections to Your Ad vantage 4-C

P age | 266
Table of Contents
Description Module
Step 5: Closing the Sale
When to Close 5-A
Close 5-B
Growing Your Territory
Tailoring Your Sales Interview 6-A
Segmenting Your Customer Base 6-B

P age | 267
Leading High-Impact Sales Document 06-05

2 – Day/Facilitator-Led
Intermediate Level for Sales Managers
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.
The High-Impact Telephone Sales Model is used:

P age | 268
Leading
High-Impact Sales
Table of Contents Page

Agenda 6
Resources 8
Welcome 10
01 - The Telephone Selling Platform 11
Telephone Sales Concepts 13
Operational Differences between Field Sales (PSSR) 24
Operational Differences between Inbound Sales (Counterperson) 26
Exercise: Typical Inside Sales Representative (ISR) Calls 28
02 - Uses of the Telephone Selling Platform 53
Product Support 56
Power Systems 57
Rental 58
Used Equipment 59
CCE/BCP Equipment Sales 60
Exercise: Group Discussion – Uses in Your Dealership 61
03 – Call Obj ectives: Product Support Compelling Reasons to Call (CRTC) 63
Setting Call Objectives– Building Relationships, Closing Sales 68
Call Planning 79
The Value of the ISR Relationship to the Customer 84
Big and Imposing to Friendly and Approachable 84
Caterpillar/Dealer Staying Top of Mind 84
Problem Solving, Advice and Counsel 84
Establishing Compelling Reasons to Call 85
CRTC Examples 88
Initial Call 90
From Customer Narrative – Previous Timing Issues 93
Customer Service 98
PIP/PSP Notices 98
PM TA1 Reports 104
S•O•S Reports 107
Recent Service in the Shop 113
Warranty Expiration 117
Specials and Promotions 121
Something New for the Customer’ s Equipment 123
Sales Cycle 125
Exercise: Customer Narrative and Problem Solving Call Examples 126

P age | 269

04 – Building Relationships: Processes 127
Keeping a Narrative 130
Tailoring Offers 132
Opening Doors 134
Transitioning Relationships 136
05 – Closing Sales: Offerings 137
Product Support 139
Undercarriage Example 140
Service Example 141
Power Systems 142
Maintenance Supplies 142
CSA agreements 143
Rental 144
Used Equipment 145
CCE/BCP Equipment Sales 146
06 - ISR Business Case 147
Product Support Coverage Ranges 150
Coverage Studies 150
Dealer Case Studies 150
ISR Business Ca se Worksheet 150
Exercise: Your Business Case 150
ISR Identified Critical Success Factors 150
ISR Quantitative Measurements 150
Outbound Telephone Sales Representative Metrics 150
07 - Getting Started 151
Guidelines for Assigning Inside Sales Accounts 154
Contact Management System 154
Contact Rate and Coverage Management 154
Environmental and Policy Considerations 154
Marketing 154
Getting Started Checklist 154
Exercise: Create Your Checklist 155
CRM Survey - 2008 156
Centralization vs. Decentralization 157
Communication Planning 161
Exercise: Your Communication Plan 162
08 - Selection 168
Competencies and Capabilities 171
The 9-Step Product Support Hiring Model 188
Exercise: ISR Candidate 189

P age | 270

09 - Orientation 212
About Orientation 215
Key Principles of Salesperson Performance 215
Orientation Schedules 215
Orientation Documents 215
Exercise: Create Your Orientation Plan 216
The Deadly 6-Month Slump 218
10 - Training 219
About Training 222
Types of Training 222
Training Checklist 222
First Year Training Plan 222
11 - Managing 223
About Managing 226
Inside Sales Financial Measurements 226
Performance Management 226
Personal Business Plan 226
Exercise: Design Your Metrics 227
Compensation 229
12 - Coaching 231
A-B-C-D Quadrant 234
Personal Business Plan 234
5-Step Coaching Model 234
Exercise: Coaching Example 235
Coaching Opportunities 287
13 - Leading 289
About Leading 292
Sales Culture 292
Career Path 292
Rewards and Recognition 292
Leading Documents 292
Exercise: Group Discussion on Leadership 293
14 - Adding ISRs 295
Dynamics of the Group 298
Natural Leaders 299
Friction and Personnel Problems 300
15 - Action Planning 301
Your Implementation Plan 304
Identified Blockages 306

P age | 271
Leading High-Impact Sales
Agenda – Day 1
Module 1 : Morning – Introduction to Selling Over the Phone

01 - The Telephone Selling Platform
02 - Uses of the Telephone Selling Platform
03 - Call Objectives: Product Support Compelling Reason to Call
Module 2 : Afternoon – Getting Ready

04 - Building Relationships: Processes
05 - Closing Sales: Offerings
06 - ISR Business Case
07 - Getting Started
Leading High-Impact Sales
Agenda – Day 2
Module 3 : Morning – Managing

08 - Selection
09 - Orientation
10 - Training
11 - Managing
Module 4 : Afternoon – Leading

12 - Coaching
13 - Leading
14 - Adding ISRs
15 - Action Planning

P age | 272
Resource Key

Training for the ISR
 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.
 High-Impact Telephone Sales, a 1½ day facilitator-led inter mediate level course is

available for ISRs w ith approximately 6 months or more of experience who have completed the
Building Customer Relationships Over the Phone self-directed course. To schedule, contact
Erech Virden, Sr. Marketing Consultant, in Caterpillar’s Sales Effectiveness Marketing Product
Support Division ( MPSD) at virden_h_erech@cat.com or 309.494.5832.
 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
Training for the Sales Manager
 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

P age | 273
Managing

About Managing
The section on the ISR Business Case provided typical

metrics for the ISR position. In this section, guidelines for
establishing metrics and measurements for your ISR are
discussed.
Management is typically defined as “getting w ork done

through others.” Sales management includes establishing
the quantitative measurements necessary to ensure the
initiative stays on track. Measurable activities w ill provide
you information on coverage. To some extent sales is a
numbers game; measurement w ill ensure your ISR is
getting sufficient times at bat.
This section also includes a discussion on compensation

and performance evaluation. It concludes w ith information
on a planning process using a Personal Business Plan.

P age | 274
Key Principles of Salesperson Performance – Role Perceptions
Role Perceptions
Aptitude
Skill Level
Moti vation Level
Management centers on role perception – communicating

to the salesperson what is required of him/her and holding NOTES
the salesperson to these expectations. As a sales
manager, you’d like to put into place a management
system that w orks for you so you can invest time in
selection, coaching, and leadership.
In this section, a w ide variety of tools, documents, and

resources are presented to assis t you in this task. The
primary and fundamental document for this purpose is the
Personal Business Plan. This document, unique for each
ISR depending on territory and experience, clearly states
your expectations, thus providing the role perception for
the ISR.
ISRs also need feedback on how they are doing in regard

to activities. In many telephone sales centers, the
representatives receive feedback on the number of dials
and phone time on a continuous basis. These metrics may
be provided by the computer/telephony system or manually
distributed by clerical staff. Regardless of the mechanis m,
it is good practice to communicate metrics continuously to
avoid any end-of-the-month surprises.

P age | 275
Sales managers w ho have managed primarily field sales

NOTES
(PSSR) staffs are usually excited about the abundance of
information a good telephony and computer system can
provide about an ISR’s activities. Where as the PSSR is for
the most part self-reporting, the ISR’s metrics are provided
by the systems used to perform the job.
In the beginning, the ISR’s metrics are fairly

straightforward. After the position is established, inbound
calls and more complex customer situations and requests
will tend to make straightforw ard measurements (such as
the number of dials) less critical. As time goes on, sales
managers rely more on revenue results as the
measurement of success.
The fact that ISRs are located at the Dealership makes

them more accessible from a management standpoint.
This can, how ever, be a double-edged sw ord. Because
the ISRs are more available, it is easier to coach them
when necessary. Because they are more available, ISRs
tend to interrupt your day w ith questions.
Encourage your ISRs to “batch” their questions for you, if

the questions are not urgent. If the ISR gets into the habit
of interrupting to get answ ers after each call, it w ill hurt
productivity – both yours and the ISR’s. Encourage the ISR
to make a series of similar calls before seeking answ ers –
at least 7 to 10 dials. It is likely other customers w ill raise
more questions, w hich allows you to explore several issues
at one time.
The goal of management is to put into place a w orking

system of expectations and feedback that allow s you as a
leader to manage to the exceptions and gives you time to
invest in the critical activities of leadership, coaching, and
selection.

P age | 276
Inside Sales Financial Measurements NOTES
A number of financial measurements exist to measure and

manage the inside sales function:
 Cost Per Contact/Sale – For dedicated ISRs,

the fully burdened payroll rate (wages, benefits,
supervision) plus capital costs (computer, etc.)
plus travel and entertainment expenses (though
limited since the ISR is office bound) can be
divided by the actual annual calls to deter mine
a cost per contact.
 Cost Per Sale – Although more subjective, this

can be determined by using the same expenses
divided by an average invoice (less returns) for
parts and labor for assigned customers.
 Breakeven – This is a measure of the minimum

average annual parts and service opportunity
from assigned customers required to justify the
expense of ISR coverage. It is a calculation of
cost per contact multiplied by minimum annual
calls (4), divided by the Dealer’s w eighted profit
after direct percentage.
 Capacity – The follow ing method can be used

to determine the capacity of an ISR:
o Calculate the number of days available for
making calls (see example on next page).
o Calculate the number of calls averaged per
day.
o Multiply days by calls per day to deter mine
capacity of each ISR.

P age | 277
 ISRs Required – The follow ing method is used

NOTES
to determine the number of ISRs required:
o Multiply the number of assigned customers
by PAR of 4 to get total Dealer PAR.
o Divide total Dealer PAR by capacity of each
ISR to calculate the number of ISRs
required.
It is reasonable to consider a significant portion of the

ISR’s first year, fully burdened rate to be an investment,
recognizing the product training and skills development
needed.
Example: Calculating the number of calls per day would

be accomplished as follows given an average call objective
of 6 calls per year (PAR + follow-up calls to specif ic
customers as required by sales cycles):
Total w eeks per year

52
Weeks of vacation/holiday
4
Weeks of outside training 2
Weeks of meetings/other 3
Total w eeks available for calling
43
Days per w eek for calling 4
Days per year for calling
172
Total customers = 797 X 6 calls per
year = 4782 calls/year minimum
4782 calls in 172 days
28 calls per day
Dealer experience indicates that a call rate of 30 calls per

day is reasonable during the ISR’s initial contact and
qualification period. A call is defined as talking to a
customer, leaving a message, or getting a phone
disconnect message.

P age | 278
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:
 Revenue – compared to last year and

compared to PTOS opportunity
 Profit – average gross margin
 DCAL
 Attainment of individual customer revenue
objectives
 Customer satisfaction/loyalty
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:
 Average number of outbound calls per day –

indicator of activity level
Average call length – indicator of the quality of the

conversation

P age | 279
 Average number of inbound calls – indicator of NOTES

customer readiness to utilize and respond to
the ISR
 Territory Plan (07-02) in place and review ed
with manager at least monthly – indicator that a
current customer call plan exists to maximize
customer contact and opportunity
(See ISR Business Case/Document for a complete

summary.)
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:
 Effective team selling

 Leads to other sales functions that are
converted to prime or used product
sales/leases/rentals
 Attainment of personal development goals or
development plans

P age | 280
Significant sales grow th should be expected from the NOTES

assignment of an ISR to accounts that have had little or no
contact from the Dealership. A simple sales grow th
objective may be the most effective way to compensate the
ISR in the ear ly stages of this new inside sales coverage
program. Dealers have taken a number of approaches to
compensation:
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

P age | 281
Dealer Com pensation Metrics NOTES

 Dealer 4
o Target PSSR $100K w ith $50K base plus

$50K at risk – grow th target for PSSR set
o Target ISR at $40K – $45K base + $2K at

risk
o Did not w ant to comp ISR’s on sales only;

may w ant to change goals month to month
 Dealer 5
o PSSRs – targeted to $100K
o ISRs – $30K base, $16K variable, $2K

quarterly objectives plus corporate gain
share – “Some of our guys got to $70K w ith
additional sales over target.”
 Dealer 6
o No commission yet – salary only
o Can earn a bonus of $200 for leads + 1% of

the deal
o PM agreements – 2000 hours – pay 1% of

the contract up front
 Dealer 7
o Started at $40K base, w ill go to $35K in a

few months and then on incremental
commission – $12K possible
 Dealer 8
o Target $45K – 6$5K + incremental bonus if

does a special project

P age | 282
Performance Management NOTES
Success in the ISR position is based on a high activity rate.

The more customers that are proactively contacted, the
higher the probability that a sale can be made. Careful
consideration needs to be given to setting reasonable, yet
aggressive, short-term sales activity targets in the follow ing
areas:
 Set monthly sales objectives

 Set monthly calling objectives
 Set targets for promotional programs
Establishing a regular w eekly one-on-one review of the

ISR’s performance against the targets and mutually
developing an action plan to address concerns w ill help
ensure that a shared environment of continuous
improvement is developed.
From a professional development standpoint, goals need

to be set and progress review ed on a quarterly basis to
ensure that the ISR is developing the skills, know ledge,
and disciplines needed to be successful in his/her role at
the Dealership.
ISR Sales Execution

The initial objective for the ISR is to re-establish contact
with customers that have most likely received little or no
contact from the Dealership. Once the relationship is re-
established, the ISR can begin to w ork w ith these
customers to increase product support sales, develop
leads for other Dealer sales functions, and retain the
account as a Dealership parts and service customer.
These sales activities require focus in three areas:
 Customer acquisition
 Sales execution
 Customer retention and support

P age | 283
Customer Acquisition NOTES
With the accounts selected for inside sales coverage, it is

recommended that a three-stage, soft-sell approach be
used to re-establish a relationship and earn the customer ’s
trust. This is in sharp contrast to a telemarketing approach
where the offer is typically to sell a product.
The ISR must use a consultative selling approach to help

customers make better business decisions concerning
their equipment needs. Call outlines have been found to be
an effective tool to help guide these types of selling
conversations. Some Dealerships use specif ic call outlines
in the initial stages of an ISR’s development until the ISR is
comfortable w ith the call flow . Examples of these call
outlines can be found in the Document section of this tab.
Dealer experience has show n that a best practice for

implementing the three-call approach is to precede each
call w ith a mailing that offers a specif ic product or service.
For example:
 First contact introduces the ISR and offers a

free oil sample.
 Second contact offers a free filter cleaning.
 Third contact offers oil at the regular price and a

free grease caddy with 12 tubes of grease.
Throughout each of the three calls, the ISR gathers critical

information about the customer, including the customer ’s
work environment and machine population. The goal of
these calls is to establish w hether or not the customer has
the potential to do business w ith the Dealership over time.
Experience has also found that it takes three proactive
calls from the ISR for customers to be convinced that the
Dealer is serious about supporting them through an inside
sales function.
Sales Execution

P age | 284
ISR Sales Tasks
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.

P age | 285
Success in making effective inside sales phone calls

NOTES
comes w ith making calls and experiencing multiple
customer scenarios. Sample questions an ISR can use
are included in the Orientation section and in the
Caterpillar training courses.
Customer Retention and Support

The critical success factor in customer retention and
support is exceeding the expectations of customers.
Because ISRs are assigned a high number of customers, it
is critical they effectively plan their activities.
The ISR’s sales and support activities must take into

account the follow ing:
 Responding to customer requests once the

customer is comfortable w ith his/her ISR
 Reminding customers of seasonal specials
 Making customers aw are of promotional
programs and opportunities
The planning process begins w ith determining the number

of calls required for the assigned territory and includes the
development of a monthly territory plan that will help guide
the ISR’s next 30 days of call activities.
A simple formula for calculating potential calls per day w as

introduced earlier in the Guidebook and is repeated here.
In this example, an ISR w ith 800 accounts and an
expectation of six calls per year (including calls to follow up
on specific promotions) w ould be expected to make 28
calls per day:

P age | 286
Total w eeks per year NOTES

52
Weeks of vacation/holiday 4
Weeks of outside training 2
Weeks of meetings/other 3
Total w eeks available for calling 43
Days per w eek for calling 4
Days per year for calling 172
Total customers = 797 X 6 calls per year
= 4782 calls/year minimum
4782 calls in 172 days
28 calls per day
A territory plan is included in the Document section of this

tab. The objective of this monthly plan is to ensure that the
ISR has a documented plan to address his/her assigned
territory – one that is review ed w ith the sales manager on a
monthly basis. By completing and review ing the ISR
territory plan, the follow ing questions w ill be answ ered for
each ISR territory:
 What is the assigned territory?
 How has the ISR categorized the assigned accounts taking

into consideration Planned Annual Rate ( PA R)?
 What is the ISR’s plan to utilize and participate in

Dealership marketing and promotion activities during the
month?
 What is the time strategy for the month (call days, training
days, in-territory days)?
 Which customers are classified in the ISR’s top 20% and

why?

P age | 287
A Personal Business Plan (07-01) provides a mechanis m

to communicate expectations and confirm role perceptions NOTES
for the ISR. The plan also serves as a foundation for
coaching.
A Personal Business Plan is usually discussed with the

ISR and initialed by both the ISR and the sales manager
once its contents are agreed upon. The sales manager
should expect that each Personal Business Plan be slightly
different, given different development objectives, length of
tenure, and territory differences.
Typically, a plan is for six months. A longer time frame is

seldom doable given the dynamic nature of the Dealer ’s
business. Shorter time frames do not allow for the
completion of certain tasks such as development activities.
Although sheer quantity of activities does not guarantee

success, adherence to the metrics outlined in the Personal
Business Plan w ill assure the sales manager that the
activity numbers are in line.
The commission plan should be a separate document that

supports the goals of the Personal Business Plan.

P age | 288
Managing Checklist
Managing Checklist
 Deter mine important activity metrics (see 02-02 and the appropriate sections in this tab
for guidance)
 Deter mine compensation structure
 Create a compensation plan for the ISR
 Establish reporting system
 From telephony system (number of dials, phone time, etc.)
 From accounting (sales, etc.)
 Create Personal Business Plan (see 07-01 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
 Create a Territory Plan (see 07-02 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
 Compare actual activity metrics from the reporting system against the Personal Business
Plan on a regular basis
 Discuss findings of the activity metric comparisons w ith the ISR
 Meeting expectations – “Keep up the good w ork”
 Not meeting expectations – “Let’s figure out how to improve”

P age | 289

07-01 Personal Business Plan
07-02 ISR Territory Plan
07-03 Sample Marketing Plan
07-04 Sample Marketing Collateral – Thompson Tractor

P age | 290
Personal Business Plan Document 07-01
Name: XXXX
Date: XXXX
Department: XXXX
Role and Purpose:
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.
Sales Result Expectations:
January February March April May June
Activity Expectations:
A. 30 dials per day

B. 100 minutes of phone time
C. 6 proposals per month
D. 100 new prospects per month

P age | 291
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.
4. Solutions – Advantages – Benefits – Questions: Use SABQ on your sales

conversations to generate interest and pre-qualify areas of interest.
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.
16. Cross- and Up-Selling: Cross-sell and up-sell w here appropriate.

P age | 292
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.
24. Batch Calls: Batch similar calls together for efficiency.
25. Tone of Voice: Use an enthusiastic and optimistic tone of voice.
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.
Prom otion Plan
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 and Sales Manager initial here:

P age | 293
ISR Territory Plan Document 07-02
ISR Name:
Date of update:
Assigned territory: (Brief description of territory)
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)
Time Strategy: (For current month)

 Planned call days
 Planned training days
 Planned “in territory” days
 Other
Identify the top 20% of your assigned customers by year-to-date revenue performance
(attach listing):

P age | 294
Sample Caterpillar Marketing Plan Document 07-03
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
To: Larry Brandon

Vice President of Product Support
Sample Caterpillar
From: Dave Costello

Inside Sales Manager
Sample Caterpillar
RE: ISR Sales Group Marketing Plan
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.
Thank you again for your support!

P age | 295
Sample Caterpillar
Inside Sales Representative Group
Marketing and Sales Plan
Fiscal/Calendar 2010
By Da ve Costello, Sales Manager

P age | 296
Results 2009
Targets
Inside Sales Representatives: 3
Incremental Product Support Revenue: $ 1,200,000
Initiative Return-on-Investment: 39%
Results
Revenue
Incremental Margin Profit (21.3%) $ 265,231
Expenses
ISR Base Salaries $ 90,000

ISR Commission $ 495,216 x .05= $ 24,760
ISR Salar ies Total $ 114,760
Payroll burden (w orkman’s comp, etc) 15% $ 17,214
Office burden (rent, utilities, etc) 15% $ 17,214
Sales management expense 25% $ 28,690
Direct Support (training, travel, etc) $ 9,000
Gross Profit $ 78,353
ROI 42%
9 machine sales from leads generated / $ 568,000 revenue

P age | 297
Suggested Sales Plan/Budget for 2010
Revenue
Incremental Margin (21.3%) $ 330,150
Expenses

ISR Commission $ 800,000 x .05= $ 40,000
Marketing ($5,000 per promotion x 4) $ 20,000
ROI 43%
12 machine sales from leads generated / $ 750,000 revenue

P age | 298
Inside Sales Representatives (ISR) - Commentary on 2010 Plan
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.
I have requested budget for four promotions:
CSA – “Have a Headache Free Season” January – March

Undercarriage – “Get Traction” April – June
CCE- “Skid Steer Roundup Days” July – September
“Winter Anti-Freeze Special” October – December

P age | 299
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.
Planning Activities in 2010
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.

P age | 300
Sample Marketing Collateral – Thompson Tractor Document 07-04

P age | 301

P age | 302
Resource Key

Management for the Sales Manager
 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.

P age | 303
Coaching

About Coaching
Think about a good coach you have w orked w ith in your life
– w ho would that person be?
Would it be the little league coach you had in the summer of

your six th grade year? The band director who helped you
discover the difference between music and noise?
Perhaps the physics teacher who revealed the secrets of
the universe where only complex equations existed before?
The mechanic w ho taught you that any problem can be
solved? Your first boss?
What made this person special?
A great coach provides leadership and helps others

improve. “Sales coaching” is very important to the ISR and
helps a Dealership build a department of superior sales
representatives.
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.

P age | 304
Key Principles of Salesperson Performance – Role Perceptions, Skill Level, and

Moti vation Level
Role Perceptions
Aptitude
Skill Le vel
Motivation Level
Coaching is one of those rare activities that influence role

perceptions, skill levels, and motivation levels. Coaching NOTES
time w ith the sales manager boosts role perceptions by
clarifying expectations and explaining the differences
betw een expectations and current performance. Coaching
raises skill levels by pointing out w hat w as observed and
comparing it to best practices. And coaching boosts
motivation because of the investment of one-on-one time.
All this said, conducting coaching is costly in ter ms of the

sales manager’s time. One-on-one time provides the sales
manager w ith little time leverage across the department.
That is w hy coaching should not be used as a substitute
for a good management system to promote and rew ard
activities; coaching should focus on improving the
behaviors that directly impact sales results.
Observation plays a key role in the coaching process.

Observing an ISR typically means shadow ing the ISR
when he/she is making telephone calls or listening to call
tapes. (Caution – call taping is prohibited in some states.)
While review ing call tapes is more time efficient for the
sales manager, the benefit of shadow ing is that the sales
manager coach can watch the ISR perform all of the
activities required to w ork the territory.

P age | 305
Once the sales manager coach has observed a series of

NOTES
sales conversations, he or she should identify three things
to praise the ISR for, and three recommended areas of
improvement.
While a sale manager coach may identify five or six areas

that need improvement during any given observation
session, it is recommended these be narrow ed down to the
three areas of biggest impact. Changing telephone
behavior is difficult, and you do not w ant the task to seem
overwhelming.
Because the praise and improvement items tend to be

similar across ISRs, the documents in this section (08-02)
include a database of typical observations, along w ith
praise statements that can be used if the ISR is executing
the skill w ell, and improvement statements to be used if the
ISR needs to develop the skill.
After you have identified the praise and improvement

items, a development plan should be created. Since the
development plan requires both the sales manager coach
and the ISR to take action, it should be signed by both you
and the ISR. The ISR w ill need to master the improvement
items outlined in the plan; the sales manager coach w ill
need to follow up to see that improvement is made.
You may coach an experienced ISR only once a quarter.

For a new ISR, coaching may take place every other w eek.
This section also includes a methodology for planning a
coaching schedule.
When it comes to coaching, don’t ignore your top

performers – the superstars. Coaching is motivational
because you as a manager are devoting one-on-one time
with an employee. Experience has show n that the easiest
ISRs to coach are the top-performers and those that are
new to the position. Top performers appreciate any edge
that makes them better and puts more money in their
pockets. New ISRs are often eager to get any advice they
can get. It is the “mediocre middle” that struggle w ith
coaching. Their egos may be fragile enough that any
constructive comments are perceived as criticism.

P age | 306
Coaching Process NOTES

The High- Impact Coaching Process contains five phases:
contracting, observation, action, commitment, and achieve.
Contracting
The first phase, contracting, involves establishing a

mutual understanding of expectations between the ISR
and the sales manager. In the previous section, under the
Managing tab, you learned how a Personal Business Plan
can establish the primary role perceptions for the
salesperson. This document is your basis for establishing a
“contract “between you and the ISR – an understanding of
the expectations of the job.
Observation
Observation, the second phase in the High- Impact

Coaching Process, is the quantitative and qualitative
measurements of how the ISR is performing against the
expectations. Quantitative measurements are evaluations
of actual activities and results compared to w hat is
expected. Qualitative measurements w ill require the sales
manager coach to observe the salesperson performing
his/her job.
Action
The next phase in the High- Impact Coaching Process is

action. Action includes the steps required to bring w hat is
observed up to expectation. Your primary benchmark for
action w ill be the Personal Business Plan – the contract. If
you observe something that is not at the level agreed upon
in the Personal Business Plan, the action phase defines
the required effort needed to bring performance up to the
expected level.

P age | 307

P age | 308
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
The final phase in the High-Impact Coaching Process is

achieve. Achieve involves the tools and resources a
salesperson needs in order to take the steps required to
bring w hat is observed up to expectation.
C Contracting
O Observation
A Action
C Commitment
H acHieve

P age | 309
Coaching Technique NOTES
The sales manager coach should observe the ISR perform

his/her job and document the results of each call on the
Shadow ing For m (08-01). By review ing the calls observed,
areas of good w ork can be identified and areas of
improvement can be noted.
The next task is to use the Skills Database (08-02) to

complete a Business Development Plan (08-03), w hich is
shared w ith the ISR and serves as a road map to
improvement.
The Skills Database lists typical observation areas and

statements the sales manager coach can use in the written
development plan. (See table design below .) Praise
statements are used if a positive result w as observed;
development actions are used if improvement is needed.
The “ Development Action Plan” section of the Skills

Database explains the improvement areas in detail, w hile
the “Outcomes” section tells the ISR w hat positive things
will happen once a development action is taken. The
“Achieve Resources” section refers to modules and tracks
in the audio program, Building Customer Relationships
Over the Phone (Media Number PECJ0031). The ISR can
reference specif ic modules of the course to learn more
about each development action.
Table Layout from Document 08-02

Skills Database
Observation
POS ITIVE Result IM PROVEM ENT Result

Achieve
Item Description P raise Development Action Development Action Plan Outcomes
Resources
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.

P age | 310
Coaching Checklist
 Confir m Contracts (Personal Business Plans) are in place
 Establish a coaching schedule:
 New ISRs – Coach bi-w eekly

0 – 4 months experience
 Incumbent ISRs – Coach monthly

4+ months experience
 Mentor ISRs – Coach quarterly

1+ year experience and achieving sales and activity goals
 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
 Document your findings in a Business Development Plan
 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
 Check to see if Development Actions are achieved

P age | 311

08-01 Shadow ing Form for Telephone Sales
08-02 Skills Database
08-03 Business Development Plan

P age | 312
Shadowing Form for Telephone Sales Document 08-01
Representative: Date:
Evaluator : Collated:
Codes VM – Voice Mail DM – Decision Maker GK – Gatekeeper

Result Codes BN – Bad Number MD – Mistaken Dial OP – Operator
Intent Codes MC – Money Call PC – Prospecting Call FC – Follow-up Call
Call Time Code Description and Notes

P age | 313
Skills Database
Document 08-02
Observation
PO SITIV E Result IMPROVE MENT Result

Achieve
Item Description P raise Development Action Development Action Plan O ut comes
Resources
Organ ization ISR h as effici ent Orga nize your work area to Docu me nts an d re sources By h aving an org anize d w ork
Ski lls org aniza tio nal skil ls. maximize prod ucti vity. must b e a vaila ble to answer area , you wil l have answe rs at
que sti ons posed b y customers your fi nge rtip s, whi ch wi ll le ad
or th e sa les process. No one to mo re sa les.
1 can remembe r e ve rythi ng in hi s
or her hea d; do cuments
provi de great information
source s.
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.

P age | 314
Observation

Achieve
Resources
Al locate Ti me ISR a lloca tes hi s or her Al locate ti me effectivel y Attrition is a fa ct of l ife i n Whe n yo u cre ate a ba lance d Bu ild ing Customer
Betwee n time effectivel y b etween customers, busin ess-to-b usine ss sel ling . territory, you r sal es ru n-rate w ill Rela tio nship s Over
C usto me rs – be twee n all customer p rospects a nd customers. Owne rsh ip chan ges, you r b e mo re stabl e, pre dictable a nd the Pho ne: Mod ule
Prosp ects – segme nts. co ntacts chan ge and bu siness val uabl e. 3/Track 4
Susp ects environ me nts cha nge. Yo u
mu st alwa ys be de velop ing
new accoun ts to rep lace the
6
inevi tab le fa ll-off i n yo ur
cu sto me r ba se.
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.

P age | 315
Observation

Achieve
Resources
Prob ing for R isk ISR a sks grea t risk- Wh en a b uyer shows risk – Our big gest comp eti to r is often By reduci ng uncertain ty, yo u’ll Bu ild ing Customer
ba se d question s an d b y de layin g a d ecisio n – “d o nothing ” – that big, ugly red uce risk, thereb y clo sing Rela tio nship s Over
removes unce rtai nty co ntinue to remove ogre who hi des unde r eve ry more sal es. the Pho ne: Mod ule
an d the imp act on the u ncertainty by e ngag ing the oppo rtun ity. Ofte n times “do 4/Track, Modu le
bu si ness. cu stome r in “If you de ci de nothing ” ha ppen s b ecause the 4/Track 8 & Modul e
to move fo rward, wi ll this cu sto me r faced a risk he or she 4/Track 9
d ate w ork for you?” or co uld no t get over – wh at
si milar la ngua ge. happ ens if the solu ti on is poor?
what h appe ns i f peo ple do n't
like it? what happ ens if this
doesn’ t add ress my need s?
Risk is ca used by uncertain ty –
11 re moving un certa inty an yplace
in th e p rocess lessens risk and
increase s the chan ce o f
mo ving forward – select a date,
an appro ach, etc., and i t hel ps
ra ise th e co mfort level of th e
buyer.
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.

P age | 316
Observation

Achieve
Resources
C all Con clusio n ISR e stab lishe s go od On each cal l, make sure Wh en you esta bli sh “n ext By determini ng next steps, yo u Bu ild ing Customer
“next step s” on ea ch yo u e stab lish the “next step s” at the e nd of ea ch sa les wi ll adva nce the sal es cycl e Rela tio nship s Over
cal l – these steps step s” of the sal es process. ca ll, yo u ca n open you r ne xt wh ich lea ds to th e mo ney call – the Pho ne: Mod ule
ad va nce th e sa les ca ll with “you said” or “you wh ere you ask for th e sa le. 4/Track 11
proce ss. asked me to” or simila r
lang uage . Th is ma ke s the call
abou t th e b uyer, n ot abo ut you .
14 Yo ur j ob as a sa lespe rso n is to
ma nage the sale s cycle .
Establ ish next steps – do your
homework – and use the “you
sa ids” as yo ur n ext compe llin g
re ason to ca ll.
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.

P age | 317
Observation

Achieve
Resources
Overcoming ISR o ve rcomes Overcome obj ections by Wh en overcomin g o bjectio ns, Whe n yo u o vercome obje cti ons Bu ild ing Customer
Obje ctio ns ob jections by u sing he ACT metho d – use a three -step ACT me tho d – u si ng the AC T meth od, yo u w ill Rela tio nship s Over
ackno wled ging , a cknowle dge, clarify and acknowl edge , clari fy and a ddress custo mer co ncerns, the Pho ne: Mod ule
cla ri fyi ng and re spond , and then re spond , and transi tio n back to a nswer question s an d positio n 6 (wh ole modu le)
respo ndin g and then tran si ti on back to the sal es the sal es process. you r pro ducts an d services with
transitio ning ba ck to p rocess. Ackn owled ge by stating you the be st chance of success,
the sale s proce ss. “u nderstand ” the buye r – don ’t l eadi ng to hi ghe r sal es.
re inforce. C larify and respo nd
18 by a ski ng add iti ona l q uestion s
and usin g b enefit statemen ts.
Transi ti on back to the sale s
process by u sing a tri al close –
“H ave I answe red your
question ?” – “Ho w d oes thi s
so und to yo u?”
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.

P age | 318
Observation
POSITIVE Result IMPROVEMENT Result
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.”

P age | 319
Observation

Achieve
Resources
Time ISR man ages hi s or her U se e ffective ti me Most salesp eopl e are at their The most val uabl e re source a Bu ild ing Customer
Man agemen t time effectivel y by ma nage me nt techni ques. peak effe ctive ness when they sal esperso n h as i s h is o r time. Rela tio nship s Over
ba tchi ng call s an d batch si milar work. Typica lly, Talki ng to on e addi ti onal the Pho ne: Mod ule
orga nizin g the sal es jumpi ng from task to ta sk takes d ecisio n make r eve ry day can 8 (e nti re mo dule )
da y. long er than d oing l ike items a t resu lt i n 2 00 more
the same time. Se t apa rt ti me con versations a year,
to make your pho ne calls so p ro ducin g mo re sa les.
tha t you can get in a rhyth m
and focus o n the cu stomer.
Be cause our prod ucts and
se rvices have a sales cycle, w e
24 need to invest time an d e nergy
tod ay to reap rewa rds
tomo rro w. Because the rewa rd
is n ot immed iate, i t’ s di fficul t to
put o ff those thin gs tha t loo k
mo re u rgent.
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.

P age | 320
Observation

Achieve
Resources
Voi ce ma il ISR u se s voi ce ma il Wh en leavi ng a vo ice Wh en th e vo ice mail is abo ut By alig nin g yo urself w ith the Bu ild ing Customer
effecti ve ly to ad va nce ma ils, start wi th the the customer, not a bout u s, we b uyer, you’ ll get more Rela tio nship s Over
the sale s proce ss. b usine ss i ssu e – i t wil l ra ise ca n bridg e the ga p between the resp onses to voi ce ma il. the Pho ne: Mod ule
the pe rcentage of vo ice cu sto me r's org aniza tio n and 3/Track 2
ma il respon se a nd ind icate our company. A sale sperson’ s
to the custo mer i t’ s “al l job is to take the boun dary
a bout th em.” position – wi th on e foo t in the
cu sto me r’s ca mp a nd one foot
in th e co mp any’s camp. It’s all
26 abou t th em – di agn ose before
yo u prescribe . By referrin g to
the b usiness issue – wha t
prompted you to g et starte d –
yo u bridge the ga p a nd improve
the o dds yo ur vo ice mail wil l be
heard.
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.

P age | 321
Document 08-03
Business De velopment Plan
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:
1. Ask good questions to uncover product solutions as benefits to the customer.

2. Use reference stories to provide proof and generate excitement.
3. Use a compelling reason to call to open each sales call.
Development Action Plan:
 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:
 By using solutions – advantages – benefits – questions, you w ill generate more

excitement and focus the sales conversation on w hat most interests the customer – and
increase sales.
 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.

P age | 322
Achieving the Goals – Resources to Use:
 Building Customer Relationships Over the Phone:

Module 2/Track 2 & Module 4/Track 3
Follow-Up Activities
 Meeting to review progress – Friday 3 p.m. – Sales Manager’s Office
We are committed to completing these actions.
______________________________
Representative
______________________________
Coach
_______________________________
Date

P age | 323
Resource Key

Coaching for the Sales Manager
 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.
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

P age | 324

P age | 325
Leading
About Leading

About Leading
Confidence is everything to an ISR. Confidence gives the
ISR the ability to ask one more question and to make the
call about the customer. Confidence changes the tone and
the result of the sales interview .
Confidence in a sales group is contagious. If one ISR

catches it, the others tend to catch it over time. This
section on leadership provides guidance on specific
actions the sales manager can take to boost confidence
and resulting performance.
Management is doing things right; leadership is

doing the right things.
~ Peter F. Drucker
While the previous tab on managing contained advice on

doing things right to manage an ISR and an inside sales
department, this tab on leadership provides information
and guidance on doing the right things.

P age | 326
Key Principles of Salesperson Performance – Motivation Level
Role Perceptions
Aptitude
Skill Level
Motivation Level
Leadership is primarily about motivation. High-performing

sales organizations are not just managed, they are led. NOTES
Of course, no one person can motivate another. Each

person must choose to invest energy and enthusiasm into
his or her job. A w ell-led sales organization, how ever, is
somew hat self-policing. Strong leadership creates a
motivational culture w here ISRs hold themselves
accountable to a high level of performance.
The sales manager has a series of tools available to assist

with establishing a motivational culture. In this section, w e
will look at sales meetings, incentives, rew ards, and
recognition. While compensation is motivational (w hich is
why most salespeople have some “at-risk pay” dependent
on performance), w e addressed compensation under the
Managing tab.
Sales meetings are motivational because they reinforce

team behavior and peer group expectations. Sales
meetings also provide a great opportunity for reward and
recognition activities.
In this tab, some activities for sales meetings are

presented to reinforce the sales skills of the department. In
addition to these activities, you are encouraged to
establish a mechanism w hereby the ISRs can be
recognized by others within the Dealership. Achieving a
personal best month, closing a large sale or receiving a
customer compliment can all be recognized. The ISR
position, as an entry level position, w ill not have the
glamour and glory of a PSSR or machine sales position;
how ever, the need for recognition may be higher because
the sales egos of the individuals involved are just being
established.

P age | 327
Many leadership activities and processes are designed to NOTES

provide emotional nutr ition for the ISR. Let’s face it, picking
up the phone 20 to 30 times a day is not an easy w ay to
make a living – especially in the beginning w hen
relationships have not been established and customer
wariness is high.
Constructing a sales culture that boosts motivation is

difficult, but w ell w orth the rew ard. A famous marine once
said that taking a hill under enemy fire is not just proof of
patriotis m or valor, but proof of the human desire to not let
our buddies dow n who are also charging up the hill. So
too, a high-performing sales culture boosts motivation by
setting the bar high and expecting that everyone w ill clear
it – each and every day.
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.
Almost every sales organization has stories and informal

conversations that shape the mindsets of its members and
create the culture. As a sales manager, you can influence
the establishment of this culture by working on the areas
you can influence. You can’t directly influence the informal
“w ater cooler” conversations, but you can influence much
of what takes place w ithin the w alls of the Dealership.
The sales culture, more than anything, tells a new ISR

what is expected. If high expectations are documented and
presented in Personal Business Plans but the everyday
actions of the salesperson’s peers do not reflect these
expectations, the new ISR w ill probably settle at the level
of the rest of the group.
The basic tools of the sales manager revolve around

storytelling, meetings, conversations, coaching, and
apprenticeship.

P age | 328
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.
Find as many avenues as possible for your salespeople to

share stories. If you are just beginning an ISR initiative,
ask your PSSRs, mechanics, field service technicians, or
counter personnel to share stories.
Reference stories teach salespeople how customers use

the Dealer’s products and services and help create a
“customer-focused” mindset. These stories make the
products and services your Dealership offers real.
Sales Meetings
Many sales organizations hold w eekly meetings to discuss

new products and services, organizational issues, goals,
and objectives. Sales meetings can be pow erful tools to
also build the mindsets that form the sales culture.
Games and activities can be used in sales meetings to

reinforce sales concepts and let the group engage in a
spirited joint activity. In the Document portion of this tab,
you w ill find six games you can use during a sales meeting
around various sales skills: reference stories, compelling
reason to call, customers, Dealer product and service
solutions, and objections. These games and activities
typically take 15 to 20 minutes to complete.
Sales Contests
Sales contests can also boost a culture by spurring friendly

competition and providing motivation. Contests don’t need
to be about money –they can be for a couple of hours of
time off, the cubicle closest to the restroom or a banner
that says #1 – nor do they need to be for individuals. Team
contests in a large sales group can also be motivational.

P age | 329
Career Path – Technical vs. Management

NOTES
Many Dealers have decided to use the ISR group as a
“farm team” for other Dealer sales and mar keting positions.
If this is a choice you have made for your Dealership, the
career path for a new ISR w as established and set at the
time of hire.
Other organizations have adopted a “w ait and see”

approach. For these Dealers, the ISR may choose to apply
for other positions once he/she is qualified, but a career
path is not mapped out at the time of hire.
Whatever selection you make for your Dealership, it is

important to communicate the career paths open to an
ISR, as future possibilities are motivational.
Many Dealers w ill hire an ISR w ho aspires to be nothing

but the best ISR possible. There are ISRs in organizations
outside of the Caterpillar netw ork that have been in the job
for twenty years! This path – the one to technical sales
excellence – is a path you should consider if you find an
individual w ho likes selling over the phone as a destination
position.
These long-term ISRs provide true bench strength for the

sales manager. They are successful (or they would have
moved on a long time ago) and they are often capable
mentors w ith the ability and drive to take new ISRs under
their w ings. A good mentoring program can serve not only
the experienced ISR, but the sales manager and Dealer as
well.
Rewards and Recognition
Rew ards and recognition are critical

to a sales organization. After all, there
is no other part of the Dealership that
hears “no” more often than the sales
group.
Rew ards can be relatively simple, like

a “personal best month” certificate.

P age | 330
Consider giving out rew ards on a quarterly or monthly

basis by recognizing the follow ing: NOTES
 “Personal Best” – w hen an ISR sells more in a

month than he or she sold in any previous
month
 “Highest Sales” – for a period of time
 “Tw o Million Dollar Club” – for achieving a

certain level of sales (it doesn’t need to be tw o
million) in the last 12 months; perhaps the ISR
gets his/her portrait up on the w all in the sales
department
 “Salesperson of the Year” – for a defined

customer-centric metric such as “satisfaction,”
“account growth,” etc.
 “Hardest Working” – highest number of dials or

phone time in a quarter
 “Most Improved” – largest increase in sales in

an established territory
 “Early Bird” – first to sell a brand new product or

service
 “Gold Rush Champ” – highest sales during a

sales contest
You can probably think of many others.
The recognition an ISR receives from his/her manager is

perhaps the most important. Your salespeople are in a
boundary position at your organization – w ith one foot
planted in the customer’s business and one foot in yours.
This boundary position causes considerable tension for the
ISR on an ongoing basis, and recognition provides the
emotional nutrition for the ISR to go back and do the job all
over again.
Others in leadership can also provide recognition. In most

cases, the ISR position is still a s mall part of the Dealer ’s
sales organization. Making sure the ISR doesn’t get lost
among the other cogs of the sales machine w ill go a long
way toward building a great sales culture.

P age | 331
Sales Meeting Activities

NOTES
Six ideas for activities to be used in sales meetings are

included under the Document section of this tab. Each
activity includes the business goal as w ell as instructions
on how to implement the activity. Copy any tools included
that are necessary to conduct the activity.
The final document (09-07) is a profile for you to use to

evaluate your department and to identify areas of potential
improvement. There is no “right” or “wrong” to the
motivational profile; it can provide you w ith a road map for
improvement if you choose to use it.

P age | 332
Leading Checklist
 Sales Meetings
 Scheduled
 New Products/Services
 Dealer and Company Information
 Game or Activity
 Sales Contests
 Planned
 Organized
 Held
 Career Path – Technical vs. Management
 Path spelled out
 Communicated
 Rew ards and Recognition
 Program Designed
 Communicated
 Implemented

P age | 333

09-01 Sales Meeting Plan 1: Reference Stories
09-02 Sales Meeting Plan 2: Compelling Reason to Call
09-03 Sales Meeting Plan 3: Customers
09-04 Sales Meeting Plan 4: Customer Bingo
09-05 Sales Meeting Plan 5: Solutions
09-06 Sales Meeting Plan 6: The Objections Game
09-07 Motivational Profile

P age | 334
1 Sales Meeting Plan: Reference Stories

Date(s): _____________________ Document 09-01
To share reference stories within the sales group.
Goal
Reference stories are short stories of customers using Dealer

products and services to solve business issues. Reference
stories are powerful tools in the sales process. ISRs can use
reference stories in sales interviews, and sharing the stories
can help other ISRs learn about how Dealer products and
Concept
services are used to solve customer problems.
Two days in advance of the meeting, communicate with the

sales group you would like each member to be prepared to
share one reference story with the group during the sales
meeting.
Tools
Prepare one reference story yourself to share with the group.
 Share with the sales group that customer stories help us

learn how Caterpillar and Dealer products and services help
customers solve business issue s.
 Explain that sharing stories with our customers (without

mentioning names) will help customers see our capabilities
Activity and build our credibility.
 Share your reference story.
 Go around the room and ask each member of the group to

share his or her story.
 After the meeting, have each participant e-mail you his or

her story. Place the stories in a file that is accessible to the
entire sales team. Share the stories with new ISRs.

P age | 335
Reference Story
A story of a customer solving a

business issue using the benefits of
your product or service
Six Components of a Reference Story
1. Affected business description
2. Business problem or business opportunity
3. Why did this problem happen?
4. What did the potential buyer want?
5. What did our product provide?
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.

P age | 336
2 Sales Meeting Plan: Compelling Reason to Call

Date(s): _____________________ Document 09-02
To have the sales group brainstorm a compelling reason to

call around a promotion or new product, including selecting
the appropriate customers to call. Use this exercise when you
have a new promotion or product to promote.
Goal
A good call opening includes a compelling reason to call

statement – a statement of what is important about the call to
the customer. A good compelling reason to call makes the
call about the customer, opens up the communication, and
Concept reduces ISR call reluctance.
Bring literature or marketing materials of the promotion or

new product to the meeting.
Tools
 Present the promotion or new product or service. Answer

any questions the group may have about the promotion,
product or service.
 Break the group into small groups of 2 to 3. Ask each

group to brainstorm a compelling reason to call; this should
Activity be a powerful statement of why the customer should be
interested in this product or promotion. Allow the groups 15
minutes to come up with their answers.
 Capture each group’s answers on a flip chart or white

board.
 Discuss.
 Document the results in an e-mail and send it to all

participants. Save in a file for new ISRs.

P age | 337
A compelling reason to call is a short statement of

why this call is important to the customer.
You can use a compelling reason to call when you

speak with the person who answers the phone, with
the decision maker, or if you choose to leave a
voicemail message.
The compelling reason to call sets you apart. The

compelling reason to call lets the customer know you
are calling about serving his or her needs.
The best compelling reasons to call use the word

“you.” The buyer has the responsibility to buy; a
compelling reason to call that uses “you” is part of a
conversation about the buyer and what he needs to
make a good decision.
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.
It’s all about them – it’s all about the customers.
Example:
Situation You have developed a relationship with a customer who owns

three pieces of Caterpillar equipment. You have not called the
customer in three months; your PAR is four times a year. The
customer’s name comes up in your system to call. You have not
discussed any preventive maintenance services with this customer
in the past. He takes good care of his equipment and seems
interested in any advances which will save his business time and
money. You decide to propose the S•O•S service.
Compelling “Caterpillar and our Dealership have developed a preventive

Reason to maintenance program called S•O•S. Oil samples are taken
Call regularly to determine the correct oil change intervals and to
diagnose any potential engine problems. If you have a moment, I’d
like to ask you a couple of questions to see if S•O•S is something
we should investigate for your business.”

P age | 338
3 Sales Meeting Plan: Customers

Date(s): _____________________ Document 09-03
To broaden the ability of the sales group to determine how

best to increase sales within an account.
Goal
As with any sales position, it is easy for an ISR to fall into

specific patterns of behavior. This exercise is designed to
take advantage of brainstorming and to help the ISRs learn
from one another.
Concept
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.
 Ask each participant to share his or her customer scenario.

When the ISR is done presenting, have the group brainstorm
“next steps.” Capture the group’s ideas on a flip chart or
Activity white board.
 Have each participant e-mail you his/her customer

scenario.
 Save the customer scenarios and brainstorming answers.
 In one month, revisit the exercise and have each ISR

report to the group on the progress within the account.

P age | 339
Sample Case Study Idea
“I have a customer who is a Do-It-Myself customer. He has four Caterpillar machines: a

backhoe, a couple of skid steers, and a newer model Cat excavator – just coming up on
three years. This customer does small sewer and water projects. He buys Cat parts
from us, although we haven’t received any service work – as I said, he does his own
repairs. We don’t get any maintenance supply orders from him.”
Brainstorming ideas for this sales representative:
* Extended warranty for Cat exca vator
* Fluid/filters agreement
* Do you know if this customer needs any work tools for these
pieces of equipment?
* How about GET for the equipment?
* Does this customer need any additional buckets for the backhoe
or excavator?
* Have we measured the undercarriage on the excavator?
* How does this customer use the excavator?

P age | 340
4 Sales Meeting Plan: Customer Bingo

Date(s): _____________________ Document 09-04
To teach representatives to remember their accounts as

individual customers.
Goal
By remembering accounts in a competitive game format,

ISRs will understand the concept of learning about their
Concept customers as businesses, as buyers, and as individuals.
Create enough copies of the bingo card (found on the next

page) for each participant.
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.
 Hand out a bingo card to each participant.
 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.
 The first ISR to have a bingo (3 boxes in a line up or down,

horizontal or diagonal) wins.
 Reward the winner with a small prize.

P age | 341
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#

P age | 342
5 Sales Meeting Plan: Solutions

Date(s): _____________________ Document 09-05
To practice generating solutions, advantages, and questions

for a product or service.
Goal
Solutions (or features) are attributes of a product or service,

advantages are something the solution does for a customer,
and benefits are pre-qualified advantages. Often ISRs need
to communicate the attributes of a product or service to the
customer during a sales interview. By practicing this skill in a
Concept
group, the ISRs will also have the opportunity to brainstorm
ideas with their peers.
Two days in advance of the meeting, communicate with the

sales group you would like them to be prepared to brainstorm
the solutions (features) of a product you selected.
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.
 Distribute copies of the blank matrix to each participant.
 Review the example of Caterpillar Filters with the group.
 For the product you selected, have the group develop

solutions, advantages, and questions to pre-qualify the
Activity advantages as benefits.
 Capture answers on a flip chart or white board.
 Distribute the answers to the group and/or post the flip

chart pages in view of the ISRs’ workstations. Save for new
ISRs.

P age | 343
Solution – Advantage – Benefit

Caterpillar Filters
# Solution Advantage Question
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?
Are lower operating costs

critical?

P age | 344
Product: ____________________________
# Solution Advantage Question

P age | 345
6 Sales Meeting Plan: The Objections Game

Date(s): _____________________ Document 09-06
To share information on objections and devise new

approaches to objections as a sales team.
Goal
Solutions to objections should be shared across your sales

group because ISRs will often hear the same objections. This
exercise gives ISRs a chance to challenge their teammates
and to learn from one another.
Concept
You will need one copy of the Objections Game worksheet

(found on the next page) for every two participants.
Tools
 Remind the group of the ACT Method of handling

objections. (See the pages following the Objections Game
worksheet.)
 Divide the group into teams of two. Have each group write
down a challenging objection they have heard from a
Activity customer.
 Ask each team to exchange worksheets with another team

and provide a response to the objection on the worksheet
received. Once this is completed, the worksheet should be
returned to the team that originated the objection.
 Debrief by having the teams read the objections they

originated and the responses they received.

P age | 346
The Objections Game!
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

P age | 347
Information on Overcoming Objections NOTES
Overcoming Objections: ACT

How to Overcome Objections – Don’t
Avoid – ACT!
A – Acknowledge. The key is to acknowledge the

customer’s objection without reinforcing it. Don’t give
the customer’s objection more power by reinforcing
the problem; simply acknowledge the objection and
address any concerns.
C – Clarify and respond. Clarify your understanding

of the customer’s objection and then respond
appropriately using solutions and advantages of your
product or service in terms of benefits and/or sharing
a reference story to illustrate how you have dealt with
a similar objection in the past.
T – Transition back to the sales process. After

clarifying and responding to the customer’s objection,
transition back to the sales process by restating the
business issue and emphasizing the value you can
provide by helping the customer take action and deal
with the issue.

P age | 348
Overcoming Objections: 8 Different Common Objections
# 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
* First job of sales is to generate or hold interest
* 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
* Early in sales cycle; usually surfaces after lack of interest
3 Lack of authority Here the customer wants to buy but can’t.

to buy
* Business-to-business: boss, committee, others
* Consumer: significant other, friends, etc.
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.
* End of sales cycle problem – often mixed up with product or service

objection
* Clarification is needed because customers don’t like to talk about risk

– i.e., a consumer buying a car – neighbor gets the same car for less

P age | 349
# 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.
* Clarify early in the sales process – may use ranges
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.
*Customer stops coming in or won’t take your calls – worried about

what will happen next – what can go wrong? Can I afford it? Is this
seller reliable? Is the seller’s company reliable? What if my neighbor
gets a better deal? What if my boss thinks this is a bad decision? What
if it doesn’t work?
8 Price objections The buyer objects to your price.
* 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

P age | 350
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.
Overcoming – Example of a Overcoming a Negotiation Price

Objection
Customer: Your price is too high.
ISR: Ms. Bickle, I understand value is important to you.

Can you tell me specifically what about our quotation seems too
high?
Customer: All of it, I guess. It seems like a lot of money to

pour into a backhoe.
ISR: I understand replacing the engine with a Reman is

a significant undertaking. Earlier, you told me your primary
reason for moving forward was your growing business. You
looked at buying a new engine, but it seemed more cost-
effective to select the Reman. Has anything changed?
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?
ISR: My goal is to provide a quote to match your needs.

Why don’t we start by re viewing the criteria you established
earlier?

P age | 351
Price Objection
Overcoming – Example of Overcoming a Value Price

Objection
Customer: Your price is too high.
ISR: Ms. Bickle, I understand value is important to you.

Can you tell me specifically about your concerns?
Customer: I have another quotation that is substantially less.
ISR: I understand you have a quotation that appears to

be less expensive. I want to make sure we have an “apples-to-
apples” comparison and you are really getting the same items
and quality of workmanship. Earlier, you told me your primary
reason for moving forward was your growing business. Together
we created a list of criteria that I’ve listed on the quotation. You
told me craftsmanship and durability was important, so we
looked at other replacements my Dealer has done and you told
me our work was the quality you wanted. Does the other
quotation cover the same craftsmanship and durability?
Customer: I asked them to quote on the same project.
ISR: I understand you wanted a way to assure yourself

you were getting a fair price. Often times our customers get
lower prices, but the specifications and workmanship used were
less. Did you investigate the other organization’s quality of
workmanship and the types of materials they would use?
Customer: No, I haven’t seen their workmanship yet.
ISR: In my experience, the materials used and the

quality of workmanship directly affect the value you will receive.

P age | 352
Motivational Profile Document 09-07
Check the appropriate box.

Needs Not Really
Topic Fantastic So - So Work Applicable
The Department as a Whole!

1 Every salesperson knows exactly what he/she is
compensated on and what incentives he/she can
reach.
2 Each month, a salesperson can easily calculate what

he/she will make in commission/bonus and is able
to track this throughout the month.
3 Each salesperson has a development plan. This

development plan (in the Personal Business Plan)
addresses skill enhancement.
4 Each salesperson is told about the expected level of

performance and where his/her past performance was
against his/her Personal Business Plan.
Rolling Out Sales Contests!

5 We have a good program of sales group contests and
incentive plans.
6 When we have a contest, it is designed to support

our business needs. Our contests are fair and rewards
are distributed in a timely manner.
7 We don’t use contests in place of a good standard

compensation system. Contests are the frosting, not
the cake.
We have a program of recognizing superior

performance
8 for individuals within the sales group.
9 for teams within the sales group.
10 If someone's performance is not up to par, we don't

make a public deal of it. We address it in private.

P age | 353
Needs Not Really

Fantastic So - So Work Applicable
Advancing the Salesperson's Career!

We hate turnover. We find ways for salespeople to
advance either on a technical track or a management
track. We do a pretty good job of holding on to our
"A" level performers (those meeting revenue and
activity goals).
We have communicated to the sales group the criteria

for advancement. We will provide the resources to
achieve the criteria.
We have a sufficient number of positions available

for advancement.
We have designed our pay and benefit packages to

retain our superior "A" level performers (those meeting
revenue and activity goals).
We have a good technical track available for those

salespeople who don't want to go into management
but want to hone and improve their sales skills.
"A" level performers (those meeting revenue and

activity goals) tend to stay with us and they are
motivated to stay at this level.

P age | 354
Needs Not Really

Fantastic So - So Work Applicable
Everyone's Favorite Topic – Money!

17 When we hire new salespeople, our compensation
plan seems to be in alignment with competing
positions.
18 We have reviewed our "at-risk" pay plans. The plans

seem to support the goals of the organization, and
they seem to be in alignment with the expectations of
the sales group.
The compensation plan "bullet points" are

19 clear to everyone in the sales group.
20 measurable by the sales group.
21 based upon objective measurements known to all.
22 The salespeople feel they are paid fair compensation

for the work they are asked to do and any changes to
the plan are handled fairly.
23 The compensation plan supports the sales and

business goals of the organization and encourages the
salespeople to do things that support these goals
and achieve the sales objectives.
24 Each salesperson has a standard to which he/she is

judged and is committed to achieving. The
salespeople have input into setting their standard
and the standards of the department.
25 Increases in pay are tied to how an individual

salesperson performs in his or her job.
Totals:

P age | 355
Resource Key

Leading for the Sales Manager
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 two-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 309.494.58

P age | 356

P age | 357
Adding ISRs

About Adding ISRs
Grow ing your department beyond your initial ISR begins

the process of creating a sales department. With more
than one ISR, group dynamics come into play and the
Leading section of this Guidebook w ill be especially
important to you.
Dealers w ho have implemented the ISR concept have

allocated additional accounts to inside sales by reducing
the number of accounts assigned to PSSRs – allow ing
outside sales to focus on larger accounts.
A good rule of thumb is 1,200 accounts that have not been

worked w ill yield a territory of 800 to 900 for an ISR. With a
first ISR, you can test this rule in your Dealership; your
results may vary depending on local factors and
conditions.

P age | 358
Sample Caterpillar Marketing Plan Document 07-03
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
To: Larry Brandon

Vice President of Product Support
Sample Caterpillar
From: Dave Costello

Inside Sales Manager
Sample Caterpillar
RE: ISR Sales Group Marketing Plan
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.

P age | 359
Sample Caterpillar
Inside Sales Representative Group
Marketing and Sales Plan
Fiscal/Calendar 2011
By Da ve Costello, Sales Manager

P age | 360
Results 2010
Targets
Inside Sales Representatives: 3
Initiative Return-on-Investment: 43%
Results
Revenue
Expenses

ISR Commission $ 800,000 x .05= $ 49,810
ROI 51%
14 machine sales from leads generated $854,500 revenue

P age | 361
Proposed Budget
Revenue
A] Incremental Product Support Revenue: $ 2,200,000

4 ISRs - Commission over $ 250,000 – 5%
B] Incremental Rental Revenue $ 400,000

1 ISR - Commission over $ 250,000 – 5%
Incremental Margin (20%) $ 80,000
C] Incremental Used Equipment Revenue $ 800,000

1 ISR - Commission over $ 500,000 – 2.5%
Incremental Margin (10%) $ 80,000
Total Incremental Margin $ 628,600
Expenses
A] ISR Commission $ 1,200,000 x .05= $ 60,000

B] ISR Commission $ 150,000 x .05= $ 7,500
C] ISR Commission $ 300,000 x .025= $ 7,500

ROI 35%
20 machine sales from leads generated $1,200,000 revenue

P age | 362
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.
Staffing for 2011
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.
In addition, I w ill become a full-time Inside Sales Representative manager. In order to

accomplish this financially for the Dealership, I have increased the percentage allocated to
management in my budget to 35% or $ 89,250. In the future w hen w e can add tw o more
positions, this percentage w ill reduce back to 25%.
Here is a synopsis of our expansion plans:
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

P age | 363
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.
Planning Activities for 2011
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.

P age | 364

P age | 365
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.
See Tab 02 - ISR Business Case
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.

P age | 366
4. What accounts w ill be assigned to the inside sales function?
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.
During qualification, it is not uncommon to disqualify 25% to 30% of customers initially

assigned – some customers may have sold the equipment, no longer be in business, or
use the equipment for hobby or personal use.
5. What contact rate should be planned for each assigned account?
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.
See Tab 03 - Getting Started
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.
7. What metrics can be used to measure the effectiveness of an ISR?
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.

P age | 367
8. What is the typical customer segmentation?
ISRs contact all customer segments, Do-It- Myself (DIM), Work-With- Me (WWM) and Do-
It-For-Me ( DIFM).
9. What products and solutions can be effectively sold by inside sales?
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.

P age | 368
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.
See Tab 02 - ISR Business Case and Tab 10-Adding ISRs
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.
See Tab 04 - Selection
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.”

P age | 369
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.
21. What is the recommended training plan for a new ISR?
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.
See Tab 05 - Orientation

See Tab 06 - Training
22. What is the most effective compensation structure for an ISR?
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.
See Tab 07 - Managing
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.
See Tab 07 - Managing

P age | 370

Included in this Guide
And on the CD
01-01 Inside Sales Representative ( ISR) Checklist
02-01 ISR Business Case Worksheet

02-02 ISR Quantitative Measurements
02-03 Outbound Telephone Sales Representative Metrics
02-04 “Sample Caterpillar” ISR Business Plan
03-01 Call Outline: Initial Call of 3 to Customers (No Announcement

03-02 Call Outline: Call 2 out of the Series of 3
03-03 Call Outline: Call 3 out of the Series of 3
03-04 Call Outline: Cat Care Meeting
03-05 Call Outline: Winter Antifreeze Special
03-06 Call Outline: CSA – “Have a Headache-Free Season”
03-07 Call Outline: Maintenance Mania
03-08 Call Outline: PSP/PIP
03-09 Call Outline: S• O•S Reports
03-10 Call Outline: TA1 Visual Walk-Around Inspections
03-11 Call Outline: Extended Warranty
04-01 ISR Resume Screening For m

04-02 Telephone Interview Rating For m
04-03 Selection Interview Questions
04-04 Job Description
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

P age | 371

Included in this Guide
and on the CD
07-01 Personal Business Plan
07-02 ISR Territory Plan
07-03 “Sample Caterpillar” Marketing Plan
07-04 Sample Marketing Collateral – Thompson Tractor
08-01 Shadow ing Form for Telephone Sales

08-02 Skills Database
08-03 Business Development Plan
09-01 Sales Meeting Plan 1: Reference Stories

09-02 Sales Meeting Plan 2: Compelling Reason to Call
09-03 Sales Meeting Plan 3: Customers
09-04 Sales Meeting Plan 4: Customer Bingo
09-05 Sales Meeting Plan 5: Solutions
09-06 Sales Meeting Plan 6: The Objections Game
09-07 Motivational Profile
10-01 “Sample Caterpillar” ISR Expansion Plan

P age | 372

CAT Isrc Guidebook Engine 031709 Rev F

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

CAT Isrc Guidebook Engine 031709 Rev F

Transféré par

Droits d'auteur :

Formats disponibles

Product Support Inside Sales Representative

Implementation Guidebook – Power Systems

© 2009 Caterpillar, Inc.

Written by John Dieseth, President, Business Performance Group, Inc.

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

02 – ISR Business Case…………………………….. 23

03 – Getting Started…………………………………. 101

10 – Adding ISRs…………………………………….. 357

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

ISR Business Case

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

Detailed Topic List

Service Points 115

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

Detailed Topic List

Call Outlines 224

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

Detailed Topic List

Managing Checklist 288

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

Detailed Topic List

Frequently Asked Questions (FAQ)

Document Guide 370

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

This guidebook is intended to be a workbook – it includes documents in each major

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

 CRM – Need help selecting a customer relationship management (“CRM”) system?

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

ISR Business Case

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

Like a w rench or a good pair of work clothes, this

Many of the documents found in the Guidebook w ere

At the beginning of the introduction is an

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

The Guidebook is arranged in chronological

The Executive Overview provides a quick orientation to

Background contains supporting material, as w ell as

Checklists are provided to assist you in managing the

Documents is comprised of forms and analysis tools. A

And finally, Resources includes places to go for more

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

The Guidebook should be

Product Support NOTES

The Guidebook should be used in conjunction w ith support

Your Dealership is faced w ith multiple challenges in

The ISR position is designed to be a cost-effective

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

The primary approach is not telemarketing, nor is the

 Cover 800 to 1,200 accounts producing $2 million

 Place 25 – 30 outbound calls per day to his/her

 Handle inbound calls from assigned customers –

 Manage the overall Dealer/customer relationship to

 Provide Dealer solutions w ith a focus on current

A Product Support ISR functions in a way similar to that of

 Selling parts and services to specified customers

 Contacting customers on a planned basis to

 Understanding a customer’s current business

 Maintaining accurate customer equipment

 Discussing the uses and features of various parts

2009 Caterpillar Inc. Guidebook ENGINE 031709 Rev F Release C

The Sales Interview NOTES

Sales communication consists of body language, tone of