Why Isn’t My Sales Person Selling?
Hiring salespeople is a time consuming and costly exercise, so it’s important to get it right and keep it right. Unfortunately, not all salespeople are equal and managing poor performers is a common (and stressful) problem for many businesses, no matter what their size.
There are many reasons why sales people stop selling and why some just don’t work out and it’s usually not the ones that they are telling you. Personally, I think the main reason salespeople fail to perform are due to lack of direction and little to no accountability. Salespeople, no matter how professional or how experienced need direction and need and expect accountability.
Salespeople can be your best asset or your worst asset depending on how you manage them. If you have a salesperson that is not performing, here are some reasons that might shed some light on the situation:
All care, no responsibility.
This is where you as the Manager or Business Owner don’t take responsibility for the success of your sales person and you simply dump everything into your salesperson’s lap, hoping they will miraculously turn things around. You provide no leadership or support to the salesperson – just set and forget which is an extremely risky thing to do. I see this a lot in smaller businesses where the owner has little to no interest in sales or salespeople. If you employ salespeople, you need to be ask questions, be interested and be involved.
The Business Saviour.
Many business owners secretly hope that a salesperson will be the answer to their prayers; the saviour who will quickly start generating sales and increasing profits. While a good salesperson can make an enormous difference, it won’t happen overnight. You still need to invest considerable time and resources to market your company and to manage and develop your salespeople.
Not communicating expectations.
Salespeople need direction and they need to know exactly what is expected of them. Unfortunately, many Owners and Managers fail to communicate expectations clearly to their salespeople. When that happens, it’s common for salespeople to think they’re doing fine, whilst the Manager/Owner sees them as under performing and starts to get very frustrated. Communicate expectations (also known as KPI’s, key performance indicators) in writing from day one. Setting KPI’s on sales activities, customer meetings & networking events in addition to sales revenue, will ensure that sales remain consistent month to month.
Lack of Accountability.
When you are reliant on your salespeople to generate sales, why would you risk your business by not knowing how much and when the sales will come in? Holding a weekly team meeting to discuss the sales pipeline and sales activity is a simple way to introduce accountability. If your salespeople aren’t making sales at least your aware of it and can do something about it. Don’t wait until it’s too late. At the beginning of each month, have a performance review with each individual salesperson and discuss their performance for the previous month against expectations. If you have poorly performing salespeople, ask them to achieve specific revenue targets or tasks within a specified time frame. It will help you know whether to keep them or get rid of them.
Remember, if no-one cares what the salesperson is doing or whether they are making sales, why would they?
Hiring the wrong type of salesperson
There are two types of salespeople: those who can win new business (Business Development Manager or Hunter) and those who grow existing accounts (Account Manager or Farmer).
Most businesses want to employ salespeople who can generate new business, because they’re already good at developing relationships with current clients. They want the type of salesperson who can make cold calls, build new relationships, and close a deal with a new client. This is much harder to do, requires different skills and has higher salary expectations.Be clear on what you want your salespeople to do so you can match the skills, experience and salary accordingly. If your salesperson isn’t selling, ask them what they have done in the last month to add to the sales pipeline and generate sales. This is where the majority of mistakes are made with salespeople – hiring an account manager find and close new business sales. They rarely have the desire or the skills to do so.
How much is enough?
Coming up with a fair and equitable commission scheme that works for everyone can be challenging. Giving away too much, too easily can make salespeople lazy and lose their hunger (not to mention frustrate the business owner or manager). Others can be too stingy or hard to achieve which does nothing to attract or keep the best performers. Remember, salespeople that win new business should be paid more than those who manage existing accounts. A commission scheme with an emphasis on commission rather than just a base salary will help to retain, reward and motivate ‘hunters’ whereas the security of a higher base salary will retain, reward and motivate ‘farmers’
Poor marketing and tools to support the salesperson.
Study after study shows that having a single approach to sales (such as cold-calling) won’t work on its own. Salespeople need solid marketing collateral, messages and campaigns that get prospects interested to meet with them. A well-ranked & effective website, email marketing and social media are great tools to generate leads that are completely free. They also need training and a solid understanding of the services and benefits you offer. The more time you spend training them and supporting them with marketing efforts, the quicker you will see them succeed.
Karen Andrews is a sales and business development strategist who is driven by a passion for sales and helping businesses improve their sales results. Shine Sales Solutions offers strategy development, sales management, sales coaching and training for small and medium businesses. For more information go to http://www.shinesales.com.au
Popularity: 65% [?]
Putting Your Sales Training Under The Microscope
Sales training is organised and carried out very differently from business to business. Many companies regularly train their employees in a planned way, whereas others only train sporadically.
Training for sales people is not cheap. On top of the direct costs, there is also the cost of lost time that the salespeople could have spent actively selling. Because of this, it is important to ensure all sales training is effectively planned, organised and implemented. In the article below some of the key areas relating to the planning of training, together with who should be responsible for managing the whole process, are discussed. How does your business compare?
Who is responsible for deciding on the training programme? In large businesses the sales manager and/or in-house sales trainer are responsible for these decisions. However, in smaller companies the Managing Director or Senior Executive is responsible for training matters.
Who sets the training budget? In large companies only a third of the budget is set by the business management with the most important role being played by the training department, followed by the sales managers. In smaller companies the order is reversed: in most cases responsibility for the budget lies with the business management, followed by the sales managers.
If technical competence primarily controls budgeting for training matters in large businesses, in smaller ones the responsibility follows the formal hierarchy.
Who plans and organises the sales training? In over 90% of large businesses the training department is responsible. In smaller businesses either the business or the sales management have the responsibility. It is astonishing that with such an important task there is often very little co-operation between the responsible parties.
Who delivers the sales training? In the majority of large companies the in-house trainers carry out the training and in the third of all businesses they are supported by sales managers. In smaller companies, as a rule, the training is carried out by Sales Managers. However, more and more companies are seeking external suppliers to provide structured sales training programs.
Co-ordination and communication. Trainers should obtain feedback from the sales leadership at every step. Even if this starts by increasing the costs of planning, the improved communication between the sales manager and trainer will lead to a better prepared and, above all, more targeted training session. In this context intensive questioning of those to be involved in the training is important.
Who Sets specific, measurable goals? Business management, sales management, training departments and training suppliers must determine the training goals and outcomes together. Agreement of goals and outcomes prior to delivering training ensures everyone pulls in the same direction and the training is designed to achieve these goals.
Once the goals have been defined they should be communicated to everyone involved in the training. In particular, it is very important that the goals are explained to the participants and that this happens before the training session. Participants should be briefed on what they should learn and why they need what they are going to learn! This should be done by their sales manager.
Who selects the delegates? Where courses are of various levels it is important that the delegates attend the correct level of training. So before every training course the standard of the participants’ knowledge should be determined. This assessment should be by the line manager, often in partnership with the trainer. Of course, the following classifications can be applied to parts or individual topics within a general course and used to focus delegates on particular areas for improvement.
Vague idea. The people just know that this problem/phenomenon exists. Example: they have heard or read the term Trade Marketing, but do not know what it is about.
Partial knowledge. Knowledge is partial or superficial. They have heard something ringing but do not know where the bells are.
Understanding. The subject being discussed is well known theoretically. The training course participant can correctly explain what Trade Marketing is.
Experience. Delegates are not only able to talk about the subject expertly, but they have already worked successfully in some fields.
Specialist competence. Course participants have a complete mastery of the subject area. They are experts in theory and practice.
Overall view. Course delegates do not just have a mastery of the special subject, but they see it in a broader context at the same time. They understand not only possibilities, but also limitations.
Who assesses the sales training? In very few businesses, whether large or small, does the business management get involved in the assessment of training effectiveness. This is surprising insofar as sales training is an extremely important and costly measure.
The question, What has it yielded? is as justified as it is difficult to answer. The idea of just observing a salesperson’s turnover development following their attendance on a training course falls short of the mark.
So how can you measure the effective uses of a training session?There is a four-stage assessment procedure that in its basic principles is over 30 years old and is now being increasingly used in budgetary difficult times. The following four different effect levels are considered:
Level 1: Reaction. Immediately after the training course the participants are asked to fill out an assessment questionnaire in which they express their satisfaction with each part of the course. The questionnaire provides feedback and should be used to improve any parts of the course that were seen to be weak.
Level 2: Learning success. Did the training course improve the salespeople’s knowledge, attitude towards sales, attitude towards the client, argumentation skills etc…? Tests can easily be followed by a standardised questionnaire. The assessment of this level, as with level 1, can be carried out directly after the training session. You can compare it to previous knowledge and behaviour. However, it can only be compared afterward if you have already carried out an initial test with the same questions.
Level 3: Behaviour. Has the training course altered the salesperson’s behaviour? Do the participants use their newly acquired skills in their sales negotiations, in their personal working style and in their dealings with clients and colleagues?
Remember, behavioural changes require time and opportunity. A sensible amount of time to monitor behavioural changes is generally two to three months after the training course. This assessment presupposes that you have recorded the salesperson’s behaviour before attendance at the course. Level 3 is the most costly one for assessment.
Level 4: Results: What effect has the training course had on the figures? Take into consideration turnover, the amount of discounts granted, costs per sale, number of complaints etc. Here a before and after comparison is informative. Ideally, you would compare the performance of salespeople who have been on the training course with that of salespeople who have not.
This short summary of the possible evaluation methods available to you for training courses shows that you need to prepare for sales training courses and assess them afterward if you want to be able to note any change such as success. It makes no difference whether you have the training course in-house or externally.
There is another advantage of systematically evaluating training: it is easier to get approval for your training budget for the next year if you can prove the effect of the training courses you have invested in.
Courtesy of Richard at www.spearhead-training.co.uk
Popularity: 64% [?]
Sales Management Training – Managing Lead Generation – Sales Prospecting
Part I, Active Networking
For salespeople to be effective lead generators, they must have both active and passive marketing programs. Now (1) their marketing program must be their own – not the company’s (although the two can be in sync with each other), and (2) they will do both, halfheartedly or not at all unless you the sales manager shows them how and holds them accountable. Accountability means setting goals, actions and measurements. Then, review progress on a regular schedule to give meaningful feedback and motivation to reach agreed-upon metrics.
So here are some sales management training tips for managing an Active Lead Generation Process.
Active marketing is networking (a) up and out within existing accounts, (b) into competitors’ and lost accounts, and (c) new markets.
For existing accounts do your sales people have 100% of their existing accounts’ business? Do your sales people what it will take to steal accounts from your competitors? Do your sales people have a method to introduce and integrate your products into new markets? Probably not.
Now, the easiest way to get more business is to spread like a virus through all accounts, focusing on eventually getting to the C-level and/or profit center leaders and their immediate staffs. Your goal as a manager is to keep them focused on connecting with more and more people to learn their problems and potential opportunities that relate to your solutions portfolio. Then, with their gleaned knowledge, develop suggestions and strategies that these leaders find helpful. Try not to concentrate at first on the purchase, but rather on learning and then their buy-in to your suggestions. Learning their thinking will show what it will take to get buy-in. With buy-in comes support, and with support comes networking to those with the power to mandate changes, create budgets and to authorize purchases.
If your sales people stick with their one or two main contacts, their ability to discover opportunities and make suggestions that lead to purchases is severely limited. Therefore, you must insist upon an Executive Relationship Chart. The elements of such a tool include:
1. Who are all (up and out) involved people by name and title in that organization?
a. The powerful — C-Level, Profit Center Leaders and their immediate staffs.
b. The influential, the functional and the impacted.
c. The administrators — purchasing agents spec writers, engineers, and controllers.
2. Where does your sales person rank on the credibility pyramid for each of these people — 1-low to 6-a resource/consultant?
3. What actions is each taking to improve his or her position with each decision maker?
4. When will these actions be completed, and
5. How will you know it’s complete and how will you measure it?
Obviously, if your salespeople are a 5 to 6 on the credibility pyramid with the powerful, they will have access to new opportunities, which they have helped create. Conversely, if they are stuck with low-level administrators and functional people, they will be just another one of the bunch of competitors.
Your job for helping your people create quality leads is to keep them networking, learning from each individual and offering-up ideas. This process will take time, but once it catches-on, it will produce an ongoing flow of leads from new divisions, for new products, and more and more. This applies to existing and lost customers, competitors’ accounts, and new markets as well. My rule is 50% of sales people’s prospecting time should be spent on existing accounts, 30% on lost and competitors’ accounts where they have contacts, and 20% in those accounts where they have no contacts.
So start creating Executive Relationship Charts for each of your existing accounts and those accounts you would like to penetrate. These charts will yield your networking plans and the actions your people will take to improve their credibility with the powerful and influential. From these actions will emanate the leads that generate sales.
However, I guarantee your people will not do this without your pressure and your help.
Next article Part II – Passive Marketing Article
And now I invite you to learn more.
Bonus Tip: FREE E-Book “Getting Past Gatekeepers and Handling Blockers”. Just click this http://sammanfer.com/GatekeeperEbook.htm C-Level Relationship Selling Link. Sam Manfer makes it easy for any sales person to be successful and feel comfortable connecting with and relationship selling C-Level leaders.
Popularity: 70% [?]
Sales Management Software is it Worth it?
Sales management software can help you to automate your sales force and actually increase your conversion ratios from leads to sales, which increases your profitability.
Increase Sales Conversions
When you use sales management software effectively, you have information at your fingertips that can tell you at a glance which inquiries are ready to be converted into buying customers right now.
This kind of instant qualification can seriously increase the productivity of your sales team, as they’ll know which inquiries they should be working on right now and which customers aren’t ready to buy just yet.
Track Sales Targets
There’s no point in worrying about missed sales targets at the end of the month when those statistics can’t be changed. However, by using sales management software you can track your progress throughout the month so you’ll always know whether you’re on target or not.
This can help you to effectively manage your sales staff as they’ll also know what they need to do to keep on track each month.
Improve Marketing Effectiveness
While most businesses attempt to ask incoming inquiries how they heard about the business, this kind of tracking is not always the best way to monitor the effectiveness of your marketing campaign.
Sales management software can increase your knowledge about what prompted each customer to make an inquiry. You can then use that knowledge to replicate successful campaigns or tweak any marketing efforts that aren’t performing as well as you’d like.
Sales Team Accountability
Aside from tracking the sales targets for the entire business, you can also run reports on each individual staff member. While rewarding high-performing sales staff is always a good motivator, encouraging those members of the staff who might be having difficulties could help to increase productivity.
By having access to sales management software, you could begin to isolate any areas that under-performing staff members might be having. By recognizing them and then focusing on training to overcome those problems, you could easily increase the effectiveness of even your low-performing sales staff.
Activity Tracking
Having a way to categorize each client throughout the sales process means you can control each deal at every stage. You might have customers who are interested in buying, but don’t have access to funds right now. This allows you to work on alternatives to turn that inquiry into a sale.
You may have customers who have placed orders, but the goods haven’t arrived or weren’t shipped to the right place. You may also have other customers who are having a hard time with your after-sales service.
These forms of tracking can help you to keep on top of which customer is stuck on any particular stage of the sales process.
Customer Contact Management
Keeping a database of customer’s contact details is a good start, but are you capturing the right information? Your business’s past customers are your best source of new business, so having access to their buying habits and their preferences can mean more than just knowing what they bought from you.
You’ll also know which products they might also be interested in buying so you can aim direct marketing information to suit those needs. You might also want to encourage feedback from customers so you’ll know what they liked and what they didn’t. This gives you an opportunity to improve service.
For a free trial of SwiftCRM, a hosted CRM application focused on sales automation, please click through to the website.
For more information, visit http://swiftcrm.com/blog/sales-management-software and see learn to boost your sales easily.
Popularity: 66% [?]
Sales Metrics: What To Do and Measure?
One way to look at the performance of sales personnel particularly those on the road is to establish a series of metrics that give the manager a good idea of what and how they are doing BEFORE the results come in. Typically a sales manager on seeing below target results will exhort his teams to ‘get out there and redouble your efforts’ as if doing more of the same thing will improve results.
Typically the metrics for sales people involve three main areas:
The quality of what they are doing.
This comes down to their skill levels and understanding of what is expected of them. Have the team been adequately trained and are they putting into practice regularly what they have been taught?
The efforts they put in.
This is the more traditional measurement of the number of sales visits they make but should also include areas such as numbers of telephone calls, emails, and mailshots and many more
Who their customers and prospects are.
Measurement of the types of prospects and customers is essential so that considerable effort is not expended on the low profitability customers or those whose long term potential to the company is small. Segmenting by size of company and potential and then providing targets for sales staff will help achieve these goals.
Other metrics to consider are the number of new customers required each period to achieve goals (consideration of average size and average order come in here.) We have already indicated that the profitability of each customer and the potential for each prospect is also a metric that can be used.
Are the team selling the right mix of products or services in order to meet the goals of the company? Some may be more profitable than others or more difficult to obtain stretching lead times which in turn may result in a poorer performance.
By setting a series of goals and devising a range of metrics or KPIs the future performance of a sales person can be accurately predicted. This feed forward approach will allow the manager to make corrections before the rot sets in and declining sales results appear 6 months or more down the line.
Bob Francis is an experienced business consultant spending most of his time helping clients with sales and marketing issues. His expertise lies primarily in strategy, sales and marketing and is a Fellow of the Chartered Institute of Marketing. He is an expert at sales performance measurement and improvement.
To understand your sales team’s performance and get on the road to better results contact him at bob@abio.ltd.uk and ask about a Sales Audit (TM) for your team.
Popularity: 34% [?]
Sales Manager Duties:How to Change Your Districts?!
Sales Manager Duties are many and varied. Changing your sales team regions or districts is one of them. It can produce great results along side total disasters. I could not resist this one. In my own career having a a number of new sales regions and areas “given” to me this video reminded me of thinking through the levels of communication!
By the way this was a classic comedy show in the UK some years ago and many wonder if the Office was based around this.
Best Wishes
Denise and Sharon
Popularity: 38% [?]
How To Measure Sales Success
How To Measure Sales Success is the question on most sales managers lips at this moment in time when every sales is vital, alongside measuring those who are delivering in your team.
Companies most likely to thrive are those that scrutinize their strategic sales-management plans, from forecasts to pipelines. They look hard at the cost of sales, percentage of market share, salesperson-effectiveness ratios and customer lifetime value. Conversely, companies that struggle often lack such blueprints.
Effective plans require combining an organization’s goals with the individual salesperson’s business plan with a set of metrics designed to gauge everyone’s progress in meeting those objectives. The fundamental metrics to include in “dashboards” for measuring sales team effectiveness:
Accuracy percentage for monthly forecast, by salesperson
Dollar or pound value of pipeline by stage; number of opportunities by stage
Dollar or pound value of pipeline ratio to future monthly quotas
Actual sales activity compared to a defined set of standards
Average order value
Win/loss percentages by salesperson
Beyond the Basics
As you continue developing your dashboard, consider additional metrics such as:
Value of net new account sales as percentage of total sales for month and year to date
Existing account sales as percentage of total sales, month and year to date
Salesperson profitability to sales volume
Revenue per current customer per year as percentage of total sales
Cost per lead by source
Sales-cycle time from initial contact by salesperson to decision
Number of days with sales outstanding, goal vs. actual
Blended billing consultant rate, goal vs. actual
Realization consultant rate, goal vs. actual
Utilization consultant rate, goal vs. actual
Consultant backlog days, goal vs. actual
Direct sales expense as a percentage of volume, margin and quota
Looking Ahead: Leading Indicators
Leading indicators are activities or ratios that can predict revenues at least 60 days out. While simply looking at future pipeline values can provide a similar forecast, these indicators are also useful. In most cases, certain events early in the sales cycle are most likely to lead to high-percentage sales opportunities. If these begin to fall, future pipelines and revenues will probably do the same. Potential leading indicators include:
New-prospect calls made per week
Face-to-face sales calls made per week
Subject-matter expert or pre-sales tech-support calls made per week
Discovery calls made per month
Demonstrations and executive presentations made per month
Graphs comparing these numbers to dollars booked or margins generated help salespeople see the relationship between indicators and results. Finally, the ultimate goal is improving ratios and results each month and each quarter-not simply tracking them. That’s the real reason for developing a dashboard and the real route to success.
Ken Thoreson, Acumen Management president, is a recognized sales management thought leader with more than 20 years of software/technology experience, including 17 in niche market distribution with emerging and high-growth national companies. The sales management strategist is regarded worldwide as an expert in sales execution, channel management, revenue generation, sales analysis, forecasting, recruitment, and training within the sales function. Prior to founding AMGL, he led development-stage, entrepreneurial, and $250-million national vertical software sales organizations as vice president of sales.
Ken is a frequent speaker and keynote presenter at major industry conferences, including Microsoft Worldwide Partner Conferences, Cisco Systems Worldwide Partner Conference, Sales and Marketing Executives International Conference (SMEI), CA World, TechData/TechSelect Member Conferences, Ingram Micro’s XChange Conferences, SAP Partner Conference, SolidWorks World, Gartner IT Visionshare, CompTIA BreakAway, and NASBA Management Academy. He has authored two books and many articles spanning a variety of sales management topics, which have appeared in Personal Selling Power, VARBusiness, Reseller Management, Business Products Professional and SmartReseller. He is currently a columnist for Redmond Channel Partner Magazine.
Popularity: 44% [?]
The 5 critical skills of Sales-Leaders:
Increasing Sale Performance
As a sales manager you need a road-map to help navigate and drive results in a tough market economy. The fact is, it doesn’t really take a great a salesperson (or manager) to achieve quota in times of double digit market returns. But what should you as a sales-leader do when the economy hits the skids?
What are you going to do to ensure your team achieves their targets when the market is flat?
Most managers are promoted into their roles because they were “good salespeople”. Managing a team is very different! Managing a sales team in tough times is very stressful. Many struggle!
How do you as the leader plan to achieve your budget when there is so much indecision and fear in the market? Think about it, do you really know how each of your salespeople are going perform in these troubled times?
For most sales-managers it takes years of trial and error to master the art of managing a team.
The 5 critical skills of Sales-Leaders:
There are 5 critical skills that Leaders must master if they are to effectively move beyond their current limitations and drive increased results, whilst at the same time engaging their entire team preventing them from being poached by the competition.
Sales-Performance Coaching has been proven to deliver the fastest and most effective sales creation vehicle to drive your growth. One-to-one performance coaching is a powerful and time tested sales acceleration strategy. When mastered, it will maximise your growth whilst at the same time help to build a foundation of permanent growth in your business.
Sales-Optimisation Planning when done effectively, is a powerful yet simple tool which rapidly generates measurable results and is easy to introduce, control and monitor for quick wins. Whilst there are many strategy and planning methodologies around, the object of the exercise must be ‘execution’.If the planning process is too complicated or it lacks simple and tactical objectives, implementation gets put into the ‘too hard basket’. Each territory and individual Representative should have an effective plan that focuses on execution and delivery of outcomes.
Streamlined-Sales Process – A Sales-Process Map is a powerful sales consistency creation tool which captures the science for the best way to sell your products/services in your specific market. A well designed Process includes a series of pre-determined customer-focused steps that will enable your salespeople to substantively increase win rates, build customer retention and increase revenue production on a consistent basis. Each step consists of several key activities and must have predictable and measurable performance outcomes.
Sales Skill and Capability Development – For Sales capability training to be effective it must be tailored to suit your selling environment and market. Effective skill development should be based on the principle that 70% of all workplace learning happens on the job and not in the classroom. Whilst your Team may have all been trained in a specific selling methodology, many still fail to implement the elected training methodology to extract its full value. The most effective way to boost the capabilities of each salesperson is to tailor specific selling skills based on their individual needs.
Individual Performance Motivation – There is an enormous body of research out there which points to the fact that we are all motivated and driven by different needs and wants. The most effective salesperson motivation method lies in focusing on the individual.Most sales incentives and motivational drives are generally directed at the Sales Team, whereas an individually based performance strategy delivers far superior results. An individual performance management strategy should be specifically tailored to suit each of the members of your Team with a view to drive their sales development and growth, as well as ensuring the execution of their exclusive growth plan. A programme like this will also have the added benefit of enhancing the retention of your top performers.
As one of Australia’s leading authorities and coaches in sales management, Ian Segail has been involved in the coaching, training and development of sales managers and salespeople for over two decades.
Drawing on 25 years of experience in sales, sales management and leading an HR and training team, Ian brings a strong dose of fiscal reality and practicality to his works as a Sales Performance Coach.
Engaging directly with business owners and both novice and experienced sales managers alike, across a wide variety of industries and selling disciplines, the focus of Ian’s work is to transform sales results for companies by improving sales management practices.
Ian is the author of “Bulletproof Your Sales Team – The 5 Keys To Turbo-Boosting Your Sales Team’s Results” and a number of business articles, business reports and white papers including “The fish stinks from the head!” and “Why Sales Training Doesn’t Work.”
Popularity: 33% [?]
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