Monday, May 9, 2011

Sales team not doing enough selling?

Is your sales team not doing enough selling? So what are they doing and how can you change this



Studies with over 500 field sales people show that the amount of time sales people spend selling is often less than 20% of their total hours worked!

If you are concerned that not enough selling is being done, don’t start by criticising the salesperson. Instead, take a serious look at your sales team’s responsibilities and what you’re asking of them in the way of non-selling activities.

Field sales people are expensive and it is reasonable to want to know where they are spending their time.  But the fact is when you ask them to fill out complicated digital forms (Though Speadsheet or CRM format) that require them to give detailed information on their activity and provide information for other departments such as customer service, marketing, finance etc.  This all takes time, significant time.  Time I would rather have my sales team spend with customers and prospects discussing sales opportunities!


The study showed that sales people feel that significant time is being taken away from the selling activity by the following

  • Capturing marketing information about customers so customers can be segmented and marketing initiatives developed to appeal to individual segments.
  • Writing reports to keep the office informed of what they’re doing with their time.
  • Writing proposals
  • Designing and writing promotional material
  • Gathering competitor intelligence
  • Collecting outstanding debts
  • Attending non sales related meetings 




It can be argued that these activities are part of their job as a salesperson since most of them are related to making sales and retaining customers.But that’s not the point. Selling is a skill not everybody possesses, and a good (expensive) salesperson is someone to be valued, nurtured and set free to use the skill of selling your goods or services on your behalf rather than being saddled with a lot of administrative tasks.

So what should a salesperson’s role be restricted to? That will vary from business to business but let’s suggest three general areas:

  1. Selling – face-to-face selling to purchasing decision makers  
  2. Prospecting – using their experience and field knowledge to identify prospects or groups of prospects.  Depending on volume it is often recommended to have a junior sales person do the actual prospecting for field sales agents.  Technology may also help with this.
  3. Relationship building – participating in managing customer relationships, but only as really necessary 





If the members of your sales team are focused on these activities, and only these activities, their time will be spent more productively.  

So what should you do next?  Start by analyzing the non-selling activities now carried out by your sales team.

  1. What are the non-selling activities carried out by your sales team today?
  2. What non selling activities could be delegated elsewhere to ensure sales can spend more time selling?
  3. What parts of prospecting/customer relationship management can be taken up by others in the business or by technology? 





The Paretos Pipeline management system is a tool that helps solve these and other sales related issues.   Try it now for FREE!

Sunday, December 12, 2010

Sales success, the 80/20 way: Winning edge theory

Sales success, the 80/20 way: Winning edge theory: "Pareto rule: The 80/20 or Pareto rule states that only a few of the activities that you engage in (20 percent) are vital a..."

Winning edge theory

Pareto rule:  The 80/20 or  Pareto rule states that only a few of the activities that you engage in  (20 percent) are vital and the many (80 percent) are trivial.  To understand the premise of the 80/20 rule visualize 10 people who are stacking boxes over a given time period.  Pareto says that two people stack 8 boxes, while the other eight only stack 2 between them over the same time period! 

How can you apply Pareto as a sales person?  It may be educating yourself in a new product, your market or even your customers.  Perhaps you need to change your focus and look at ways to really maximize your time communicating with your customers? Perhaps it is taking 20 minutes at the end of the day to think what could I have done better today?    If you decide to think about how to apply the Pareto rule, you will find what it is for you.  Decide what the critical activities are for you and make sure that whatever else happens these activities get the attention they warrent.



WINNING EDGE THEORY

Winning edge theory says that we only have to be a little bit better than our competitor to make the world of difference to our results.  Think of the horses who consistently win their races and win 10 times the prize money of their rivals, they are not 10 times better, they are in fact only marginally better (Often just by a nose over a significant distance) but the results of being only a little bit better are anything but marginal!

How can we be marginally better than our competitors or even our rivals for that coveted sales person of the month award?  Well, below are some interesting sales statistics for you to think about

48% of sales activities do not involve any follow up with the prospect
25% of sales activities involve a second contact and then stop
12% of sales sales activities stop after three customer contacts
10% of sales activities involve more than three contacts

2% of successful sales decisions are made on the first contact
3% on the second contact
10% of sales decisions are made on the fourth contact
80% are made on the fifth to twelfth contact

Based on the above I believe you should have a sales process that engages your customer at least 5 times.

Application:  Why not create a new process that achieves this to a targeted customer list and track the results?