Sales learning curve

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sales learning curve Implementation

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Sales learning curve

  1. 1. BY: NILESH. R. DHUMAL Neville Wadia IMSR, Pune 1
  2. 2. Smart companies givethemselves time and money enough to climb the sales learning curve before ramping up the sales force. 2
  3. 3. Hiring a full sales force too fastjust leads the company to burnthrough cash and fail to meetrevenue expectations. Before itcan sell the product efficiently,the entire organization needs tolearn how customers will acquireand use it, a process we call thesales learning curve. 3
  4. 4. OBJECTIVE OF SALES LEARNINGCURVE Helps managers and investors develop thoughtful launch strategies, Plan resource allocation more accurately Set appropriate expectations, Avoid disastrous cash shortfalls, Reduce both the time and money required to achieve profit. 4
  5. 5. Progress along the sales learningcurve is measured in an analogous way:The more a company learns about itsproduct, market, and sales process,the more efficient it becomes atselling, and the higher the sales yield.“Sales yield” is defined as the averageannual sales revenue per full-time,fullytrained and effective sales representative. 5
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  7. 7. The steepness ofthe curve–a measure of how rapidly product revenues reach the break- even point and then achieve targeted levels–varies substantially from product to product 7
  8. 8. A follow-on product in a new- established market, was launched with a “better, faster, cheaper”strategy, and its learning process was far quicker. Accordingly, itssales curve is shifted to the left and far steeper 8
  9. 9. SALES LEARNING PROCESS : PHASESInitiation phase :Need of proper staffing and financialresourcesTransition phase :product is being refined, this stagelasts until company reach tractionpoint*Execution phase :When the formula for success hasbeen developed and all of thesupport requirements for sales repsare in place. 9
  10. 10. STRATEGIES FOLLOWED AT EACH STAGEInitiation Stage :Encouraging sales reps to learn about customers, productmarketing & marketing communication.Transition Stage :sales management should focus on developing a repeatable salesmodel, refining market positioning, and adding sales capacity at arate commensurate with the rise in the slope of the curve.Execution Stage :Sales reps can be hired as rapidly as the company’s managementand financial constraints will allow. 10
  11. 11. What the Organizations Needs to Learn Product developers need to correctly determine whichfeatures would make the product valuable to customers. Marketers need to correctly analyze the product’s positionrelative to its competition. They need to segment its market. Theyneed to develop packaging. Sales team needs to determine the number and type ofdistribution channels, develop a sales model, work up a salespitch. 11
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