jerrydwilson.com

Ever wonder why sales management is so easy for some and a struggle for everyone else?  Could it be their mastery of the basic steps to sales management?

In this article we will explore 3 basic and simple steps to hiring, setting expectations and then managing sales people.  These can be inside or outside sales people.  They can be salaried or commission only.  It really doesn't matter as these steps apply to all types of sales people and all types of sales plans.

Hire the Right Person

So, the first step is to hire the right person.  You need a self-starter that does not require a lot of hands-on supervision.  If you have the right person you will never have to ask them where they have been.  Their performance and results will speak for themselves.  Besides, if they are bringing in the results and hitting the numbers you want what do you really care if they goof off every once in a while.

Set Expectations

Know the demographics of the territory you want them to manage.  Know the customer base and the sales expectations.  What is the potential of the market and what is it going to take to obtain the numbers desired?

Knowing these things will then allow you to set expectations, goals and measurements with measurements being the key to obtaining the goals and then exceeding expectations.  Write these down and then obtain agreement on these numbers.  Having everyone agree to these numbers and then BELIEVE that they are possible will put everyone on the same page of the roadmap and make the journey much easier.

Remember that conflicting goals will doom everyone to failure.  Use the goal setting portion as a way to formulate the plan of success.  Have incremental goals that are used as stepping stones toward the ultimate goal of exceeding sales expectations.

Once you know the sales goal you can then work backward to understand the small steps to achieve the desired results.  Here is a simple example:

1. Know the desired sales expectation.
2. Know the average sale.
3. Sales Expectation / Average Sale = Number of Sales Needed to Meet the Goal
4. Know the closing %
5. Number of Sales Needed / Closing % = Number of Demos Needed to Meet the Goal.

Working forward using this same philosophy let’s fill in some numbers and make this more real.

1. 2 Demos per Week
2. 50% Closing Rate
3. 2 X 52 = 104 Demos per year X 50% = 52 Sales Per Year.
4. 52 Sales X $10,000 Per Sale is $520,000 in Annual Sales.

Is that enough?  The answer depends on the market potential.

Return and Report

You have GOT to hold people accountable for their performance.  If you do not they will soon drift from the path laid out and under achieve and under perform.

You have GOT to find a way to institute a return and report aspect to sales management.  This can be via electronic means where you have your salespeople enter in their daily activity into some sort of Customer Relationship Management software.  This is commonly referred to CRM.  These packages can report on activity of your people but it is only as good as the information being input into the software.

Having weekly sales reports turned in is always a good method of keeping tabs on your people.  I liked having my reports sent to me on Friday afternoon so that I would have them in time for our Monday morning sales meeting.

These reports should show new customers contacted, any demos or proposals given out during the week and updates on all existing proposals, expected close dates and what it is going to take to close the business by that date.

The weekly sales meeting needs to be a calendared event and remain a constant.  If you hold it on Monday at 9:00 am then it needs to be on everyone’s calendar and not something that is easily blown off or sporadically attended.

Attendance at these meeting is required and everyone is to participate.  Peer pressure is one of the most powerful sales management tools and this weekly sales meeting is the perfect place to exert pressure.

Praise good performance and try to remain positive with your comments.  With enough positive comments it will not be necessary to use many negatives.  People under achieving will quickly be pointed out and embarrassment will make them want to improve.  Negative comments may be necessary but should be saved for one-on-one meetings instead of the entire group.

Have an agenda for the meetings and keep everyone on topic.  Make these meeting efficient and never a waste of time.

Remember, the purpose of this weekly meeting is to hold your people accountable.  Have them return and report to you thus holding them accountable for their actions, their performance and their results.