If you ask any entrepreneur what is the most important
activity in his or her company, you are likely to be perceived
as being dim-witted. For what could be more crucial than sales?
Now, take the case of a business that is humming along, one that
enjoys dominant market share and where sales targets are met as
a matter of routine. Where does the sales process go from there?
Improving sales effectiveness is as big a challenge as cracking
a new market. When the market reaches steady state and there is
no more share to be won from competitors, enhancing the sales
process can bring valuable results. Let us examine some of the
key issues related to sales effectiveness.
Sales effectiveness is measurable. There are several
tell-tale indicators that can give you vital clues to how your
sales team is really performing. The incidence of closing a deal
is one; the average length of the sales cycle is another.
Revenue generated per salesperson is a third. Compare such data
over the years - a stagnant or declining trend may indicate a
need to shore up sales effectiveness within your firm.
Selling is also a process. Much as any "star" salesperson may
like to think otherwise, selling is not a sublime skill that one
has to be born with. Sure, some traits are necessary and others
good to have; however, almost everyone can be trained to become
a better salesperson. This underscores the need to have a well
laid out system in place. To begin with, everyone must have a
clear understanding of the target market and prime customer
segments. The members of the sales team must familiarized with a
standardized sales method including use of appropriate language,
preferred selling approach and so on. Not only does this improve
the effectiveness of each individual, it creates a consistent
and professional image for the company as a whole. Let us also
emphasize that the prescribed sales process needs to be reviewed
and refined every once in a while. If there is a new aspect to
ideal selling behavior, it must be "packaged" and implemented
across the organization.
Are your people geared up? Enhancing sales effectiveness is a
pipe dream if the right people aren't in place. The HR and sales
think-tank must evolve a "success profile" of the ideal
candidate for a position in sales. This needs to be followed up
by continued efforts to develop and manage the salespeople
throughout their career. Roles must be clearly defined, training
needs must be met, senior sales managers must coach and mentor
their subordinates and a fair system of rewards and incentives
must be implemented.
What is the company's sales philosophy? You need to dig deep
to answer this one. Start by examining whether the sales model
is aligned with the company's larger go-to-market strategy. Take
a look at whether the sales, marketing and support functions
work together as a well--oiled unit, or pull in different
directions. The sales effectiveness of a team that opts out of
low value segments to focus on a high value one will be much
higher than that of a team that does not.
The objective of sales effectiveness improvement initiatives
is to enhance the performance of the sales team, by teaching
them to do the right thing at the right time. Easier said than
done, it may need large scale and long-term commitment from the
organization as a whole.