Building the High – Impact Sales Force

There are 6 areas that a company must look at in order to build its sales
force an...
5. Basic Sales Tasks

      Order - getting
      Order – taking
      Supporting
                i. Missionary salespeopl...
Other
              Contests
              Bonuses
              Employee or 1099
              VARS or distributors


The...
MOST                           WORLD CLASS SALES
            COMPANIES                             FORCE

                ...
Develop a winning sales force architecture aligned with customer and
profit opportunities.

Today's business needs are fre...
More than five million people in the United States are now actively
employed in sales. But a far smaller number have the o...
ALLOCATING SELLING EFFORT AND

                  DESIGNING SALES TERRITORIES


I. Sales Force Size


      Three methods a...
3. Uses reverse logic.
     4.Considers sales rather than profits as the desired end result.

     B.The Workload Method -...
(3)Calculate the total amount of selling effort required to serve the
      entire market. The number of accounts in each ...
III.        Managing the Sales Force
       A.           Recruiting and Selecting Sales Representative
            1.     ...
2.              Approach - greeting the prospect
            3.              Presentation and Demonstration - tell the pro...
Tactical Recruiting Assessment
Evaluation Materials List: Information we need from you so we can better serve you

Current...
•   Average length of stay for rep who leaves
•   Yearly sales figures for: Top sales rep
•   Yearly compensation paid to ...
•   Your expectations are determined

Phase Two: Development and presentation of hiring strategies
(Presented at face-to-f...
Upcoming SlideShare
Loading in …5
×

Microsoft Word Building Your Sales Force

3,876 views
3,754 views

Published on

Building your Sales Force

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,876
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
96
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Microsoft Word Building Your Sales Force

  1. 1. Building the High – Impact Sales Force There are 6 areas that a company must look at in order to build its sales force and they are: 1. Designing the sales force Sales force objectives Sales force strategy Sales force structure Sales force size Sales force compensation 2. Managing the Sales Force Recruiting and Selecting Training Direction Motivation Evaluation 3. Sales Force Tasks Prospecting Communicating Selling Servicing Information gathering Allocating 4. Type of Presentation Approaches Prepared approach Consultative approach Selling formula approach © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 1 800-913-1359
  2. 2. 5. Basic Sales Tasks Order - getting Order – taking Supporting i. Missionary salespeople ii. Technical support 6. Sales Force Structure Major accounts Telemarketing Sales territory Sales force size How much time to spend with each account: Maximize Sum of account revenues x account margin? Subject to Salesperson time constraint? Min/max. Calling restriction? Output Recommended calling frequencies for each account Compensation At different levels Form: a) Salary plus commission b) Draw plus commission c) Straight commission d) Training pay plus commission © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 2 800-913-1359
  3. 3. Other Contests Bonuses Employee or 1099 VARS or distributors There are several areas that must be addressed when building your sales force, we will look at five areas that will make or break the building of a sales force: 1. First and most importantly, become an employer of choice. If you do not have the items that applicants are looking for then you had better have an individual or individuals that are very skilled in the art and science of attracting top talent to offset the things that you cannot offer applicants. And have a system in place that will teach those skills to the team that is involved in the recruiting process. People go to work for people first and the company second. That is why the law of attraction is so critical to your sales forces success. Your leadership team can either make or break the following systems that we will put in place: 2. Select 3. Hire 4. Educate 5. Develop We will build your sales force around those 5 areas. © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 3 800-913-1359
  4. 4. MOST WORLD CLASS SALES COMPANIES FORCE SELECT HIRE SELECT EDUCATE HIRE DEVELOP EDUCATE DEVELOP This structure does not develop a This structure establishes a solid solid base for your organization. It’s foundation for continued growth in why so many companies spend their your sales organization. All your energies struggling to keep their resources are focused on moving balance rather than directing them your people and your company to toward growth. the top. Clarify the task and answer your sales force’s No. 1 question: what do you want me to do? Think of your sales force as Smart missiles with extremely sophisticated target selection and locking mechanisms. Here are the four things your selling organization needs to know: 1. What are your strategic thrusts, marketing plans and tactics? 2. How profitable are various accounts products, services and orders? 3. Specifically, which accounts and which people within the accounts should they call on? 4. Which products and services should they sell to whom? © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 4 800-913-1359
  5. 5. Develop a winning sales force architecture aligned with customer and profit opportunities. Today's business needs are frequently served by specialized sales and other functional experts working as an account team. Realistically, "tidiness" and simplicity are not possible when your sales force is big, your customer base large and diverse and your product offerings broad. The organizational architecture must support seamless coordination among sales specialists and other functional experts. Specialization provides the opportunity to practice, learn from colleagues, develop skills within one's functional expertise and do a better job for the customer. Integration, on the other hand, is equally important because customer satisfaction and account retention are directly related to the level of integration among various units serving the customer. Integrate the units with a clear, explicit business strategy; formal management processes such as a coordinated goal setting and budgeting system; shared incentives, and a linked information system. Also use informal social channels, such as office co-location. Measure your salespeople against the clear goals specified in the sales task. Analysis of the most successful corporations demonstrates that individual and team effectiveness is highly dependent upon the "want to" factor -- i.e., motivation. Nothing increases motivation more than success, when accurately, promptly and equitably measured against an agreed-upon target. Today's market requires the design and implementation of sales information systems that help salespeople understand and track their performance: 1. Product sales goals for a customer or group of customers. 2. Customer satisfaction and retention rates. 3. Account penetration rates and profitability. 4. Creation of value and differentiation from the competition. Hire selectively, train generously and cull deliberately. © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 5 800-913-1359
  6. 6. More than five million people in the United States are now actively employed in sales. But a far smaller number have the overall competency and skills essential in today's tightly focused, highly competitive selling environments. For that reason, set strategic specifications and hire consistently to those demands. Focused, customer-relevant and persistent training is the most highly leveraged investment you can make in the process of creating and constantly sharpening the high-impact sales force. In the new selling environment, the field sales manager plays an increasingly central role, building account teams with power and responsibility. The manager's role of coach, teacher, mentor and team builder requires a significant investment in training, including the ability to manage multiple, cross-functional account teams that operate close to the customer. Those who consistently don't meet the demanding performance standards -- despite generous training, coaching and support -- should be removed as soon as possible for the benefit of all. Manage, motivate and support your sales force. Finally, the sales force must be an integral part of your corporate team. If you believe in customer orientation, your connector to the customer has to be connected to the company. As sales forces become increasingly strategic, they will need a higher share of senior management's attention. It is a high- investment, high-return proposition. The alternative is neglect, loss of relevance and the conversion of the sales force from competitive advantage to cost burden. It is hard to change a sales force, to modernize it to keep up with changing customers and to get a step ahead of the competition. It takes money, an accurate understanding of the nature and rate of customer and competitor change and a significant share of senior management attention. Yet, it is doable (companies, large and small, have done it), and it is invaluable (it increases revenue, profit and the flow of vital customer information). It is one of those rare investments that the leaders of tomorrow cannot afford to overlook. © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 6 800-913-1359
  7. 7. ALLOCATING SELLING EFFORT AND DESIGNING SALES TERRITORIES I. Sales Force Size Three methods are widely used to calculate the size of the sales force: 1.The Breakdown Method 2.The Workload Method 3.The Incremental Method A.Breakdown Method - the simplest way to calculate the optimal sales force size. Assumes that all sales people have the potential to produce the same amount of sales in one year. The estimated productivity for one sales person is divided into the company's forecasted sales to determine how many sales reps are needed. Example: A firm forecasts total sales of $10 million for the coming year. If each sales person is capable of producing $250,000 in sales per year, how many sales people will be required? Number required = Forecasted Sales Productivity per sales person = $10,000,000 / $250,000/sales rep = 40 sales reps Advantages: 1. Simple. Disadvantages: 1. No allowance for sales person turnover. 2. Assumes each sales rep has equal productivity. © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 7 800-913-1359
  8. 8. 3. Uses reverse logic. 4.Considers sales rather than profits as the desired end result. B.The Workload Method - is based on an equal workload for all sales people. To find the number of sales people needed, management determines the amount of work it takes to cover the target market. It then divides this estimate by the workload the average sales person can manage. The workload method consists of the following steps: (1)Classify customers and prospects into groups according to the amount of work required to service that group (usually based on sales volume). Example: Type of Sales Number of Account Volume Accounts A $50,000+ 120 B $20,000-50,000 250 C under $20,000 400 (2)Determine the number of sales calls an account should receive per year and the desired length of these calls. These estimates are made by past experience or judgement. The estimates are then multiplied to find the number of contact hours per year necessary for each account type. Type of Estimated calls Estimated call Total Contact Account per Year Length Hours/Year A 25 60 Minutes 25 Hours/Year B 15 40 Minutes 10 Hours/Year C 8 15 Minutes 2 Hours/Year © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 8 800-913-1359
  9. 9. (3)Calculate the total amount of selling effort required to serve the entire market. The number of accounts in each category are multiplied by the number of contact hours required for each type of account. Type of Number of Contact Hours Workload Account Accounts per Account Hours A 120 25 3,000 B 250 10 2,500 C 400 2 800 _________ Total Workload Hours 6,300 II. Sales Territory Design The territory design process strives to make all territories equal with respect to the amount of sales potential they contain and amount of work it takes a sales person to cover them effectively. I. Introduction - various classifications of sales positions ranging from least to most creative types of selling (deliverer, order taker, missionary, technician, demand creator, solution vendor) II. Designing the Sales Force A. Sales Force Objectives (tasks to perform include: prospecting, targeting, communicating, selling, servicing, information gathering, and allocating) B. Sales Force Strategy - approach can be: sales rep to buyer, sales rep to buyer group, sales team to buyer group, conference selling or seminar selling. A company can utilize a direct (company) or contractual (outside) sales force. C. Sales Force Structure D. Force Size and Compensation - level and appropriate combination of components (fixed, variable, expense allowances, and benefits). © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 9 800-913-1359
  10. 10. III. Managing the Sales Force A. Recruiting and Selecting Sales Representative 1. What Makes a Good Sales Representative? 2. Recruitment Procedures 3. Applicant-Rating Procedures B. Training Sales Representatives - several goals: to know and identify with the company, to know the company’s products, to know the customers’ and competitors’ characteristics, to know how to make effective sales presentations, and to understand field procedures and responsibilities C. Supervising Sales Representatives 1. Developing Norms for Customer Calls 2. Developing Norms for Prospect Calls 3. Using Sales Time Efficiently D. Motivating Sales Representatives - the higher the salesperson’s motivation, the greater his or her effort. 1. Sales quotas 2. Supplementary Motivators (meetings, contests, etc.) E. Evaluating Sales Representatives 1. Sources of Information - sales reports including activity plans and write-ups of activity reports 2. Formal Evaluation of Performance (current-to- past sales comparisons, customer-satisfaction evaluation, qualitative evaluation) IV. Principles of Personal Selling A. Professionalism - major steps involved in any sales presentation B. Prospecting and Qualifying - identify and screen out leads 1. Pre-approach - learning about the prospect © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 10 800-913-1359
  11. 11. 2. Approach - greeting the prospect 3. Presentation and Demonstration - tell the product “story” 4. Overcoming Objections - psychological and logical resistance 5. Closing - asking for the sale 6. Follow-Up and Maintenance - ensure satisfaction C. Negotiation 1. Negotiation Defined - in negotiated exchange, price and other terms are set via bargaining behavior, in which two or more parties negotiate long-term binding agreements. 2. When to Negotiate - appropriate whenever a zone of agreement exists 3. Formulating a Negotiation Strategy D. Relationship Marketing - based on the premise that important accounts need focused and continuous attention. Main steps in establishing a relationship marketing program include: 1. Identify the key customers meriting relationship marketing, 2. Assign a skilled relationship manager to each key customer, 3. Develop a clear job description for relationship managers, 4. Appoint an overall manager to supervise the relationship managers, 5. Have relationship managers develop long-range goals and annual customer-relationship plans. © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 11 800-913-1359
  12. 12. Tactical Recruiting Assessment Evaluation Materials List: Information we need from you so we can better serve you Current Hiring Practices • Copies of ads or other drawing materials: monster boards, websites, career fairs etc. • An outline of your current recruiting process from first contact to last • Copies or list of materials used to attract applicants: career opportunity booklets, videos, brochures, etc. • Who is responsible for hiring your sales reps? • Who is responsible for training your sales reps? How much training is involved? Home study, classroom, field training. • Who is responsible for the day-to-day management of your sales reps? • What is the average training time before a new rep begins selling? • What is your average cost per hire? Copy of Company Logo (if available) on Disk - Mac format tiff file 300 dpi (To assist us in mock-ups of materials if needed.) Compensation Package for Sales Representatives • Commission / salary structure • Company paid benefits • Career path for sales reps • Type of sales call: cold call, telemarketing? • What exactly do your reps sell? • Do your sales reps service what they sell? • Time frame for closing your average sale • Number of contacts before sale made • Average price point for a sale Current Sales Staff • Management team - if any • Size of current sales force • Number of territories that are not staffed? • Tenure of current staff • Percentage of turnover © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 12 800-913-1359
  13. 13. • Average length of stay for rep who leaves • Yearly sales figures for: Top sales rep • Yearly compensation paid to top rep (salary & commission) • Precise job description and responsibilities of sales rep you want to hire • What formal training do you now give your sales recruiting staff? • Is taking part in the hiring process part of your sales management development? • Do you have a formalized sales development program in place? Goals for Salesforce • Gross sales last year • Sales goal • Staffing goal • Time frame Depth of Commitment • Time allocated for improvements • Are all key players available to endorse program? This includes: Upper management, Sales Managers, Sales Trainers, Sales Recruiters • Budget available for improvements What Are Your Expectations of Winner’s Legacy? Selection • Retention • Productivity T•D•I Tactical Recruiting Assessment Development of Hiring Strategies Implementation of Strategies Phase One: Tactical Recruiting Assessment - typically involves some on-site and phone consultation with key sales managers • Current hiring practices are evaluated • Ads and collateral recruiting pieces are evaluated • Sales process analyzed • Current sales training and career development paths are rated • Current staffing levels and staffing goals are studied • Analysis of sales organization structure • Resources available to implement changes are scrutinized © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 13 800-913-1359
  14. 14. • Your expectations are determined Phase Two: Development and presentation of hiring strategies (Presented at face-to-face meeting) These are the types of strategies that may be presented - depending on your individual needs. • Mock-ups of new recruiting ads • Informational recruiting pieces: i.e. - Reasons to work for Your company, Income annualization charts, Mock-ups for a Career Opportunity Booklet • Career path development strategies and sales organization improvements • Suggested training program for developing existing staff as recruiters • Training program for enhancing sales manager skills in sales rep development and management • Training program in effective sales territory management • Timeline and costs for implementation Phase Three: Implementation of hiring strategies • After reviewing the suggested strategies, you choose to implement all or some of the proposed solutions • You are under no obligation to go further at this point - you proceed only if you believe the proposals have merit Phase Four: After implementation, you have a productive self-sustaining salesforce. © 2009 Winner’s Legacy a division of the Chamber Enhancement Group LLC 14 800-913-1359

×