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Sales Management: 9 Common Mistakes when Setting up a Sales Organization
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Sales Management: 9 Common Mistakes when Setting up a Sales Organization

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This Presentation provides you with advise and solutions in order to avoid common mistakes Companies make when setting up a Sales Organization.

This Presentation provides you with advise and solutions in order to avoid common mistakes Companies make when setting up a Sales Organization.

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Sales Management: 9 Common Mistakes when Setting up a Sales Organization Sales Management: 9 Common Mistakes when Setting up a Sales Organization Presentation Transcript

  • The Nine Common Mistakes to Avoid as You Build Your Sales Organization SOMAmetrics Best Practices Paper Alicia Assefa COO SOMAmetrics 2013 1
  • Contents • Objectives of this Paper • The Nine Common Mistakes to Avoid • About the Author 2
  • 2 Objectives of this Presentation 1. Show companies how to spot and avoid common mistakes when setting up a Sales Organization. 2. Help companies to adjust their expectations – common mistakes stem from the wishful thinking that revenue can be easily obtained. It take resources, time, focus and money to hit revenue targets consistently. 3
  • The Nine Common Mistakes 1. Not Willing to Invest in Sales 2. Expecting Pipeline Development/Sales in under 30 Days 3. Promoting Business Development Reps (BDR’s) to VP of Marketing 4. Not taking ownership of developing Sales Tools 5. Not defining Qualification Criteria of Leads 6. Not knowing the numbers 7. Hiring the wrong person for the job 8. Continuing to use old, stale database 9. Hiring companies that only set appointments/charge fee for qualified leads 4
  • 5 “Mistakes are the Portals of Discovery.” James Joyce
  • 1. Not willing to Invest in Sales • New Companies have a COS of 35% or higher • Many clients hire Business Development Reps to make Cold calls = playing Darts in an open Field • Example: start-up company gave BDRs yellow pages to make cold calls  Company spent $40M in 12 months and never made a sale • Use Demand Generation Programs to generate warm leads that your BDR can follow-up on. 6
  • 2. Expecting Pipeline Development/Sales in under 30 Days • Clients are under the illusion that their sales cycles will be relatively short. • Reality: Double or triple that expectation, if you are just starting the Sales Process (60-120 days) • First two weeks should be seen as an investment – as soon as the BDRs are fully trained, they will help you meet revenue targets. • Provide regular training • Good BDRs will start to build pipeline by the 3rd/4th week. 7
  • 3. Promoting BDRs to VP of Marketing • Companies don’t take time to develop the right tools for their BDR team – Message (scripts), target, how to communicate message to the target • “One Size fits all” message is not effective • BDRs end up talking to mid-level people, not decision makers • BDRs’ strength is not in writing, branding or market strategy • Provide your BDR Team with the right tools to reach your target audience. 8
  • 4. Not Taking Ownership of Developing Sales Tools • Companies let the Inside Sales Manager develop the Sales tools. They should work with “inside experts” in Marketing/Product Management and Sales VP to build the proper set of tools for the team. • BDRs gather valuable market intelligence when on the phone – you could optimize the effectiveness of the entire team by reviewing and analyzing this information to keep your message relevant. • It is the responsibility of Marketing AND Sales Operations to provide the right Sales tools to BDR teams. 9
  • 5. Not Defining Qualification Criteria of Leads • Everyone has different views about what makes a qualified lead. Marketing and Sales Executives should determine the qualification criteria. • Define the qualification criteria so that your BDRs ask the right questions and gather the right information • Paint a Picture – Leads that paint a picture of the prospects’ needs and key initiatives enable Field and Inside Sales to prepare for their first call • High Quality Leads are more likely to be accepted by Sales • Establish the lead Qualification Criteria so that your leads are of quality. Quality leads build sales funnel. 10
  • Lead Qualification Process 11
  • 6. Not Knowing the Numbers • Companies often build their sales teams without knowing their numbers (Touches to Prospects and Metrics by which to manage the team). • Funnel Math: How many Prospect Touches do you need to generate the optimal number of leads so that you can meet your revenue targets? • Metrics: How many dials does it take on average to get a conversation with a mover? • How large should your sales funnel be to help you hit your revenue targets? • Use Funnel Math to calculate your numbers. Determine the key performance indicators (metrics) you will measure your team against. 12
  • 7. Hiring the Wrong Person for the Job • Companies hire junior level people to qualify leads for Sales. Junior level people don’t have the experience to speak to C-Level Executives. • It takes a lot of training and time to get quality leads from junior level people. • If you are selling Complex Solutions, hire Teleprospectors with a minimum of 5 years experience. 13
  • 8. Continuing to use old, stale database • Companies don’t clear/refresh their databases regularly, and market to these stale prospects over and over again. • Teams calling on the wrong prospects is an enormous waste of resources. • Clean your database every quarter, so your BDRs have the right people to call. 14
  • 9. Hiring Teleprospecting Companies that set Appointments or charge a Fee for Qualified Leads • In my experience, Companies that set appointments for Field Sales haven’t been successful • Often the prospect doesn’t know why they are meeting with the Sales Rep • If you pay per lead, the quality of the lead can be subpar • It takes time to understand the prospect’s need and your solution • Hire your own staff or pay by the project or the hour to ensure that your leads are of quality. 15
  • 16 “The only constant is change, continuing change, inevitable change, that is the dominant factor...” — Isaac Asimov
  • About the Author • Alicia Assefa has over 25 years of Telebusiness and Sales Management experience. • She has worked with over 55 companies, including CA, Oracle Corporation, Informix Software, Granicus and Blaze Software, to name a few. • Alicia is the Chief Operating Officer at SOMAmetrics, a business consultancy practice that provides cost effective Inside Sales and Telemarketing Services • Visit the SOMAmetrics website to download the 9-Common Mistakes white Paper. If you would like to ask Alicia a question about Inside Sales or Teleprospecting email her at alicia@somametrics.com www.somametrics.com 510.206.9263 17