Hospitality Sales & Management International


Image by LunaWeb

Hospitality Sales & Management International


Image by LunaWeb

3 Things You Can Do Right Now to Get Sales Firing Again – Activities For Sales Managers & Leaders

There is no question that in these economically uncertain times, sales leaders will need to get a whole lot smarter and more shrewd if they are going to keep their existing customers and they are going to need to be a whole lot more crafty if they are to win the slim pickings that are still out there to be had! That being said there are some fundamental sales management strategies that when implemented are guaranteed to generate sales within the next 90 days.

Strategy #1

Your first strategy will seem so simple and so easy that you are bound to say to yourself; “Is that all there is to it?” Please do not be fooled. Whilst the strategy below may seem simple, when done exactly as I have described below, it delivers some amazing results. So don’t question, just do! It has been proven that, when effectively applied, the practice of regular one-on-one Sales Performance Coaching is the fastest and most effective vehicle to drive your sales growth. One-on-one Sales Performance Coaching is a powerful, time-tested, behaviour-changing, sales acceleration strategy and is the foundation on which permanent and consistent growth in your business is built. Whilst there are many different processes and skills to be an effective Sales Performance Coach , there are 2 activities that you can apply that would have an immediate impact to your sales drive.

Sit down with each of your salespeople either in person or by phone, ABSOLUTELY NO LESS THAN ONCE A FORTNIGHT. Depending on the state of your sales pipeline, you may need to ramp that up to once a week. Here’s exactly all you need to do…

1. IN DEPTH review the week/ fortnight just past. When you are done …

2. IN DEPTH plan the week/ fortnight coming up.

That’s it, that’s all, that’s the lot!

What does IN DEPTH MEAN?

IN DEPTH means just that. As an example, when prospecting for new business opportunities either with existing customers or new prospects, your salespeople must complete some primary due diligence and be able to answer some or all of the following questions before even fronting up or making the sales call. By having answers to the questions below will afford them the best opportunity for success. Your job in coaching them IN DEPTH is to ensure that before they invest their time and your money going to see a prospect, they are extremely well prepared. Imagine if you asked your salespeople some or all of the questions below before a business development call.

“So you are going to see Bob at ABC ….”

1. What have you learned about ABC?

2. Who are all the “players”?

3. What does your research tell you about the critical issues that ABC is facing right now?

4. What is the evidence that they are facing these issues?

5. What do you believe the potential impacts of those issues to be? What evidence do you have that they are dealing with this issue?

6. What are their current constraints in solving that issue (in relation to time, people money)?

7. What is our answer for solving the issue?

8. What are the current market trends in their area?

9. What do we know about other companies that operate in the same space as they do?

10. What are ABC’s key strategic initiatives?

11. What would their decision constraint criterion be in relation to time, people money?

12. How may we be in a position to help them?

13. What questions do you have prepared to elicit needs?

14. How do you plan on positioning the company and what it is we do?

15. What information should you bring back from your visit, to move this opportunity to the next stage of the sales pathway?

16. What is the objective of the sales call?

That is what I mean by IN DEPTH! Can you imagine just how much better prepared your sales people would be to take advantage of the opportunities out there with this kind of IN DEPTH probing?

Strategy # 2

Look for sales closest to the “bulls-eye!”

Imagine standing front on and facing the circles of a target. Imagine the “bulls-eye!” in the middle is where the money is. The circle just out side the bulls-eye represents your existing customers, let call them A’s. They are the ones closest to the money. The next circle represents those customers that have bought from you occasionally, let call them B’s. The circle just beyond the B’s are your C’s and they represent those prospective companies you have targeted but have yet to buy from you. Then outside of your C’s we have the D’s. These are prospects we have yet to consider.

Once again, as simple as this practice may seem, it is often neglected. When we need more sales, where do we go looking? Out there in D, E, F, and G land. Start looking for business closest to where the money is. Your sales opportunity is to expand your influence within your A and B customer’s organizations and earn a higher percentage of their business. According to the 2008 CSO Insights Sales Performance Optimization Report only 33.6% of C.S.O’s interviewed were able to farm additional revenues from their existing customer base, and that was last year during a comparatively good market!

Your role as sales manager is to help your salespeople identify where you have previously left money on the table. What are the opportunities with your A, B and C companies? Go work there! Let your Marketing department figure out how to bring the D, E, F, and G prospects in to where the C’s, B’s and A’s reside. If your salespeople can’t answer the questions in Strategy 1 with your A’s B’s and C customers, you have work to do. Have your people renew old relationships. Have them beat the bushes for new opportunities you have yet to capture with your A’s, B’s and C customers. They live closest to where the money lives. Go get em’!

Strategy # 3

Go to work and re-engineer your current sales process, if you have one. If you don’t then get one! The latest research from the CSO Insights’ 2008 Sales Performance Optimization Report shows that ‘process-centric’ sales teams outperform non-process-centric teams for every measurable metric.

Sales team performance and effectiveness has been shown to increase by as much as 40% when sales teams have a clear, proven sales process visible to them. The chances are extremely good that if you currently have 5 salespeople on your team, you most likely have 5 different sales processes going on all at once! What other part of your business runs on multiple different processes? Imagine running your business with half a dozen different accounting processes, or multiple IT or customer service processes? Sounds silly doesn’t it? Yet sales teams do so all the time.

Whilst you can reengineer your current selling process, the exercise is not for the faint-hearted. It may be advisable that you bring in professional expertise to ensure the greatest success. You may just be too close to your own current sales methodology to see the gaps or dysfunction.

So there you have it 3 practical ideas you can implement right now to get sales firing again. At the very least run strategy #1 for 90 days. If you will do that, sales will start to flow again.

Hospitality Sales & Management International


Image by LunaWeb

Hospitality Sales & Management International


Image by LunaWeb

Sales Management: More, Better, Faster Requires Change

I’ve been doing some prospecting lately and found that every CEO and Sale Manager I speak with has issues with their sales, but few want to do anything significantly different about their sales issues.  Sure they want everybody to do more, better and faster.  However this is the classic definition of insanity – doing the same thing and expecting different results. 

Managers don’t want to change.  They live in the hope it will get better, or they make excuses, or they use the work harder tactic.  Whipping your horse that feels he’s going all out doesn’t work, and feeding him high energy motivation doesn’t last.  It’s better to teach the horse a different gait (if he’s capable) and then maybe he can go faster, do better, and accomplish more. 

Here is the key to your success.  Your sales will grow only as fast as you grow.  In other words;

1. Do something different
   a. Have a different kind of meeting, phone conference or review.
   b. Read a book and deploy 2 ideas.  I recommend Take Me To Your Leaders.
   c. Hire someone to run a teleseminar with one specific topic and then discuss how all of you will implement it.  Majority rules.
   d. Analyze each sale and lost sale.  What worked?  What didn’t work?  Then reinforce what worked and start implementing the opposite of what didn’t.

2. Buy Help
You ask your clients to buy your expertise.  How come you resist buying expertise for yourself?  Ego??  Face it if you knew what to do you would have done it already.  You like most people in sales learned by trial and error.  Since closing ratios average less than 33%, the errors dominate.  So admit it, you do not have the answer, the time, the energy, whatever. Something is missing.

Then there are the excuses of why not to buy help. 

Budget??  I don’t think so.  How many additional sales would it take to justify a M, M, M, …, investment??

Or, time out of the field??  Maybe, since average sales people have to spend 2-3 times longer than better sales people to make a sale.  Why you’d actually save expense account money by bringing them in for something to change their behaviors vs. wasting time and money on useless sales calls and blown opportunities.

Yeah, this is tough talk, but wake-up and do something different.  Otherwise, you’ll maintain your position and float down and up with the economy against competition – assuming competition does nothing.

So here’s an action item for you.  Do it now!!

Voice what’s on our mind regarding sales – your issues, your concerns, your challenges.  Call me if you’d like.  Say it to a mirror, but you have to get it out of your mouth.  Then you’ll hear it for yourself.  Write it down and now ask yourself, “What can I do about it.  Listen from within for answers and/or sleep on it until the answers come.  If you listen they will come.   If you don’t they won’t

Once these ideas start surfacing, again, writing them all down.  It’s critical to see them with your eyes.  Eliminate the least acceptable and select 2-3 good ones.  Commit to a date to complete each.  Speaking it, listening to it, and see it are all critical component for you to grow. 

So go out and make some changes.

Now I invite you to learn more.

Sales Management Strategies

Abstract

The paper discusses three sales management strategies that are currently used. Each of the strategy is analyzed in details. The entity advantages, disadvantages and practical application are discussed for each of the strategies.

Introduction

Nowadays the world economy becomes more and more complicated because it becomes more and more global. As a result this leads to the development of an unparalleled competitiveness. Naturally in such a situation it is extremely important for survival in the market to remain competitive that demands to use the most advanced technologies, including not only technical aspect but managerial as well. It means that a company that uses the most advanced and most effective management strategies can be more competitive and has more chances for success. It is especially important when the company deals with the sales management.
The sales management is one of the most significant part of any company’s work since it is due to sales management the company can finally sell its products or services to customers and the general success of the company greatly depends on the effectiveness of the sales management. Consequently, it is absolutely necessary to know well recent trends and strategies that are used nowadays by the most successful companies that would permit to realize what strategies are the most perspective what are their advantages and disadvantages and finally it would be possible to define what strategies may be used in the future or in what way the current strategies should be modified in order to be the most effective. In terms of this paper three sales management strategies would be basically analyzed and discussed. These strategies are: Establish a Never-Before Sales Quota, Establish and Build a Team Selling Program, Employ Advanced Prospecting Technologies.

Establish a Never-Before Sales Quota

This sales management strategy deals with the market visibility problem since very often companies have problems at this respect and consequently they cannot afford competitiveness and their sales rates would gradually decrease, as the company is not well known or recognizable among the consumers. Traditionally it is said that if the company’s percentage rate of new equipment sales to customers who have never done business with this particular company and with its dealership is 20-23% or even lower than the company obviously has market visibility problems. As a result, in such a situation the circle of the company influence is not expanded as well as the rate of sales does and probably will not increase if certain measures are not undertaken. Basically such companies can work about three years than they have to retire.

However, if a company is planning to work in a long-term perspective than the company should set 30-35% rate as a ‘never-before’ goal for each of its equipment and product support sales reps. For instance, 30-35% should be with accounts that have never before done business with the company’s dealership and may even not know it exists. As a result such an increase of the company’s visibility in the market would proportionally increase its sales rate.

By the way it should be pointed out that if the company just starts some business in a new area the rate should be even higher. Basically specialists indicate that it should be about 45-50% (George 2002) only on such conditions the company sales and influence would gradually expand.

Nonetheless, it is only theory and the advantages of this strategy are obvious since the growing visibility is vitally important for increase of company sales but in real life the company that use this strategy may face certain problems that may be treated as disadvantages of the strategy. It should be mentioned that the Establish a Never-Before Sales Quota strategy is based on the never-before customer’s motivation and practically always the customers feel fear. They are fearful of the company’s reliability, its equipment, which, as they afraid, would not work as promised, and the list may be continued.

Naturally the question arises: how the company can best overcome the fear of customers in the never-before account? Basically specialists (Reilly 2000 and Goerge 2002) single out two main ways in overcoming this problem. So, the problem may be solved through short-term rentals and product support.

Obviously the two ways mentioned above are not the only one but they are probably the easiest ones. Using short-term rentals and product support it is relatively easy to penetrate never-before accounts for “by demonstrating strong dealer customer care capabilities with an aggressive, short-term rentals program and highly responsive parts and service programs, a company can quickly build a positive relationship in the new account” (Reilly 2001, p.184).

Furthermore, a very effective parts and service support tool is the planned maintenance contract. For instance, nowadays planned maintenance and full-maintenance leases are quickly gaining acceptance in North America in the construction equipment and heavy-duty truck industries.

Finally, among other advantages of this strategy may be named the fact that short-term rentals and product support capabilities eventually can eliminate fear and sales reluctance in the never before account. Thus, summarizing the Establish a Never-Before Sales Quota strategy it is possible to say that on the one hand, it may be quite effective and increasing the company’s visibility, on the other hand, there is still the risk that the customers’ fear won’t be overcome.

Establish and Build a Team Selling Program

This is another strategy that may enhance the company sales rate and its general position in the market. Traditionally dealers have three or four different employees working in the same territory. Traditionally they are: a capital equipment sales rep, a full-time customer parts and service sales rep, one or more field service technicians and, as a rule, a rental and used equipment sales rep.

However, the problem is that in some cases team selling does not work. But the root of the problems lies in the fact that the equipment sales rep is at odds with these other dealer representatives and does not consider them allies or partners in development activities. Nowadays such a situation is not affordable anymore and such type of reps should be eliminated, or, it would be better to say, changed.

Establish and Build a Team Selling Program strategy implies quite the contrary role of all representatives of the company. Nowadays this strategy becomes more and more widely used. This is why in some very successful dealer organizations prefer the thoughtful formation of territory sales teams but it should be pointed out that this is not just the assembly of field employees to grovel and provide the equipment sales rep with leads (McBride 2001, p.311). Team selling requires enlightened leadership. Consequently in order to unite all the reps as a team it is necessary to organize team activity.

Practically it means that sales team activity is a frequent meeting of specialists to share insights, establish strategies, set information gathering goals, etc that would eventually complement one another’s strengths and work together to foster the overall business development of the dealership in that given market area.

Also it should be said that this strategy demands to provide team selling recognition awards that would stimulate the work of the whole team but not its separate participants. It is also especially effective in account management and penetrating, new account development, problem solving success, market share gain.

A very important positive feature of team selling is the fact that it offers the possibility of utilizing of all of the resources. Team selling captures the mind and spirit of the company’s business and can present total solutions to customers (McBride 2001, p.349). An effective sales team is generating the highest possible revenue and profit for the business.

Summarizing the strategy, it is only should be pointed out that its main disadvantages are the problems of organizing all the reps in an effective sales team with a strong leader.

Employ Advanced Prospecting Technologies

This strategy implies the usage of the advanced and prospecting technologies as tools in achieving better results in sales rates. The most effective technology that can be used nowadays is teleprospecting. It is quite effective and inexpensive. The objective of teleprospecting program is to contact, profile and identify short-term needs, problems and opportunities of a large number of inactive and prospective customers.

To achieve such a goal it is necessary to train a teleprospector by having him/her update the company’s current customer mailing list for correct contacts for promo mailings. It is also important to train a teleprospector for ‘cold calling’ by having him/her first test a survey questionnaire or interview guide on five very friendly customers for constructive feedback. Furthermore, proper facilities and resources should be set up.

However, this strategy also has its own disadvantages. To be effective the prospecting program will require intensive administrative support to avoid wasted, non-productive time. Otherwise, the effectiveness of the program would be low.

Finally, it is necessary to provide challenging incentives. For instance, it is possible to set three completion level goals for the week and to offer a 20% base hourly rate increase for entire week if the goal is reached. It may be done as follows: