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Integrating Your Salesforce
by Paul DiModica
Every day, account managers
are dealing with new emerging competitors, downsizing
prospects, and enlarged sales quotas. Success requires
special sales training methods and a company-wide
process where all departments are responsible for
company revenue.
Today, the key to success
is premeditated, outbound business development.
In traditional firms
(start-ups and Fortune 1000 firms included), vice
presidents of sales live or die by the success of
monthly revenue plans that were forecasted twelve months
earlier. They are the hero or the goat depending on how
the revenue numbers hit that month. This evaluation
process is an immature method used to determine revenue
success (or failure). Often used by investors, it
ignores the fact that corporate revenue (or lack of it)
can be a symptom of a greater problem with the firm's
business development program.
To succeed today, firms need
to focus on the integration of all of their revenue
elements of business development. When one singular
department fails to contribute, it directly affects all
corporate sales opportunities. At that point, it is
not the sales department's failure to generate revenue,
it is the company's failure.
The four current business
development elements are:
- Sales
- Strategic Partners/Alliances
- Marketing
- Strategy and Product/Service Development
To succeed, we need all of
these departments to be positioned equally in
responsibility as partners in revenue generation. In
this economy, there can be no silos.
That means senior managers
of marketing, strategy, and alliances need to be
assigned a line position with the appropriate
responsibilities and compensation.
The result is that sales,
strategy and marketing all have a sales quota. Working
in concert,
being paid as a team, their decisions and
responsibilities will be centered on helping account
managers sell more.
If your firm has not aligned
these elements with equal compensation based on total
revenue, assigned milestones based on a group
performance, or implemented weekly goals for each
manager based on revenue producing expectations, then it
is time to change.
Today, companies can no
longer afford high-priced sales executives or support
departments who don't carry revenue goals. Instead, line
managers are needed to represent all departments working
in concert to generate revenue.
Remember, it is not the
sales department's responsibility for revenue; it is the
company's responsibility.
5 Common Mistakes in Sales
Mistake No. 1 - Most
salespeople shoot from the hip. Let's be honest. Sales
is a premeditated sport. To be successful, you need to
prepare every step of sales cycle. Amateur salespeople
wing it. When meeting clients for the first time,
presenting to CEOs, or negotiating contracts, always sit
down and plan your actions, talking points, and
methodology in order to win business. Many salespeople
become lazy and interact with customers based on the
salesperson's previous experience with a particular kind
of client. Professional salespeople know that every
client is different and in this competitive economy,
preparation wins business.
Mistake No. 2 - Salespeople do not cold call. No,
it's not the favorite playtime of salespeople, but if
you wait for your marketing department or your inside
sales force to find qualified leads, your competition
may already be locking down a big deal in your territory
and you will be too late to join the game. To increase
your quota success, add cold calling to your schedule
every day.
Mistake No. 3 - Salespeople underestimate the
importance of the client presentation. Fifty percent of
all sales are won through the presentation. It is the
only time when most of the decision makers are in the
room and can be educated as a team about the unique
characteristics of your product or service. To increase
closing ratios, focus on the content and process of your
presentation. Prepare to present.
Mistake No. 4 - Salespeople do not stay in touch
with their prospects. Selling is also a contact sport.
You need to interact with your prospect on a timely
basis. You should touch the client every week with some
communication device (email, letter, brochure) prodding
them to move their buy cycle closer to your sales cycle.
Prospects have short memories. Don't let a more
ambitious competitor steal your prospect because they
are more visible in their communication.
Mistake No. 5 - Salespeople underestimate the
competition. In sales, it is kill or be killed. When
selling a client, always assume that there is
competition until you see a signed contract or purchase
order. Several years ago, a study revealed that Fortune
1000 companies were negotiating with an average of four
companies on the last step of a purchase.
Simultaneously, only half of the time did the buying
companies tell the vendors how many players had made the
short list. Never assume you got the deal, until it is
signed.
Rick Erling
President The CxO Group, LLC and
Publisher of The CxO News
www.thecxogroup.com
info@thecxogroup.com
(972) 727-6880
Recommendations provided are to be used at your
discretion and are provided solely as an independent
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