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On Building A Sales Organization – 4 August 26, 2013

Posted by David Dirks in Sales Compensation, Sales Management, Sales Metrics, Sales Strategy/Tactics, Sales Tactics.
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Once you figure out the kinds of sales team you need and how to compensation them to higher performance, you’ll need to ensure you arm them with the resources they’ll need to succeed.

First is sales collateral – those print and digital pieces that can help the sales process along.  That said, I’ve never seen or heard of any sales collateral that sells all by itself.  Create sales collateral that support the sales process.  The principle of “less is more” applies here.  And makes sure that your sales collateral looks professional and not like it was put together on the cheap.

Then there’s sales training.  This isn’t the place for determining what kinds of sales training your burgeoning team of one to more sales people.  What I can tell you is that the right balance of sales training and coaching on a regular & consistent basis is worth the investment.  Most small businesses provide little to none sales training except perhaps for some training at the beginning of their employment.

Sales training is like physical exercise.  It should be challenging and slow build sales “muscle” – those skills that become part of their sales behaviors after a period of training and reinforcement.

Sales coaching is another support mechanism that’s necessary for a bare-bones but effective sales organization.  The challenge is that most small business owners don’t often have the sales background that would enable them to provide sales coaching.  What to do?  If you don’t have a sales management background here are three key points to cover in each of your individual sales coaching sessions:

  • How close are they to meeting their current sales goals?  If not close, why and what can be done to improve performance?  If they are on track, what are they doing right?
  • What are prospects & customers saying about our products and services?  This is a good time to take the “pulse” on what the street is doing or saying about the kinds of products and/or services your provide.
  • Set goals for the next session.  Success is incremental and so is the progress needed to get there.

Sales professional need regular & consistent support in the field.  Make sure you are able to provide it before you commit to building a sales force.

On Building A Sales Organization – 2 July 24, 2013

Posted by David Dirks in Building A Sales Organization, Sales Management, Sales Strategy/Tactics.
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DirksProPhotoNote: This is the second in an ongoing series on building an effective sales organization/team for a small business.

So you want to build your sales organization…make it strong…faster…better…at finding and creating new business for you?  No problem – as long as you recognize, acknowledge and are able to execute with the ability meet several criteria.  I’ll deal with the first in this post: targeting, hiring and training the right sales people.

Here’s how I laid it out in the first post on this subject:

Willing to either hire experienced sales talent or willing to invest in the sales training required to help entry-level sales personnel become productive in a reasonably short time period.  Doesn’t much matter how great your sales opportunity is if you aren’t willing to either hire successful, experienced talent or hire the best & brightest entry-level talent – and then be willing to support them with the best-in-class sales and product training you can afford.

Here’s how:

  • Develop a list of job responsibilities – the tasks they would need to implement day-in-day out to accomplish their sales mission.  Then you need to articulate exactly what they are accountable for in the sales job.  Making sure you have thought through exactly what you need this person to do and what they are being held accountable isn’t as obvious as it sounds.

Example of a job responsibility:

Research and target potential prospects that fit our customer profile within the sales territory assigned.

Example of a job accountability:

Meets monthly, quarterly and annual sales targets for specific product categories as assigned.

Job responsibilities lead to the fulfillment of job accountabilities – those measurable end results that count.  They add real value to the business…in sales and revenues.

Now let’s talk about the minimum amount of sales experience you need.  You may only need a college graduate – fresh from the ceremony – for the kind of business and industry you’re in.  Or you may need someone with specific kinds of industry experience.

For example, a John Deere dealer will most definitely need a sales staff that understands agriculture, farming and the machinery that makes it all work.  A company that sells specialty software to banks and other financial institutions will want someone with banking industry experience that relates well to their product line.

Be clear about the minimum amount of bonafide sales and industry experience you need for their success and yours.

  • Well before you think of placing an ad (based on your well thought-out job description), think through what kind of initial and follow-on training will be necessary to give your new sales hire the best chance of a strong start.

Setting anyone…experienced or not…on their own without much attention to the amount of initial product, service and sales training they’ll need to become productive, is not effective.  The first 30 to 60 days of any sales persons life in your business is critical.  So it’s worth the time and effort it takes to prepare and initial your sales hire with the right amount of product and sales training that will boost their initial productivity.

Target the right hire. Train them well. Watch them grow.

On Building A Sales Organization – 1 July 20, 2013

Posted by David Dirks in Building A Sales Organization, Sales Management, Sales Strategy/Tactics.
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David Dirks

David Dirks

Note: This is the first in an ongoing series on building an effective sales organization/team for a small business.

There comes a time that some successful small businesses find themselves in.  It’s the time to consider the need to build more revenue by engineering a sales organization.  What does a vibrant, dynamic and proactive sales force give you?  How about the ability to scale your revenues by adding more boots on the ground?  Now I’m NOT talking about going from 1 or 2 sales people to 20 overnight.  The first step is recognizing that the only way you can scale revenues in a northerly direction is by building a sales organization starting from ground zero.

But let me save you the money, time and resources it takes to build a sales organization and culture in your small business.  It’s simple from my experience.  If you are willing to do ALL of the following, you have the right stuff to really create a viable and revenue contributing sales organization whether with 1 or 20 people:

  • Willing to either hire experienced sales talent or willing to invest in the sales training required to help entry-level sales personnel become productive in a reasonably short time period.  Doesn’t much matter how great your sales opportunity is if you aren’t willing to either hire successful, experienced talent or hire the best & brightest entry-level talent – and then be willing to support them with the best-in-class sales and product training you can afford.
  • Willing to create a sales compensation plan that truly rewards people for their efforts but doesn’t leave them wondering how they are going to eat while they ramp up & beyond.  Whether you hire experienced or entry-level sale people, be prepared to compensate them within the range of what is at least the standard for you industry.  Going cheap on the compensation plan equals  consistently high turnover.  At best, you’ll be a good place for someone to get some training and experience before they go off and find a real sales organization to make a living off of.
  • Willing to support your sales team with the resources they will need to get the job done.  That includes providing them with professionally created sales collateral (brochures, catalogs, product info sheets, etc.) – and not material created by your niece or nephew who calls themselves a “graphic designer”.  Sure, they’ll work on the cheap for you but more often than not, their work is substandard.  Hire professionals with a bonafide track record.

So, if you’re truly committed to hiring quality, providing compensation that motivates and allows someone to earn a better than average living, and support them with the sales tools they’ll need to be successful – you can entertain building a real sales organization.

 

The Greatest Lie in Sales January 11, 2012

Posted by David Dirks in Sales Management.
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The biggest lie in sales?  It’s the answer from a sales person to this question:

Did you close business from this (print ad, direct mail piece, radio ad, TV ad, etc.) we ran?  

Now, the savvy salesperson who’s been around awhile will probably (not in all cases but most) say a resounding “YES” to that question…even though it’s probably not true.  Yup.  Happens more often than you think.

Case in point.  Many years ago when I arrived at JPMorgan Chase, I took inventory of the kinds of marketing efforts that were underway when I arrived.  The print ad spend was very high and sales managers went out of their way to tell me how highly effective the print campaign was.  The results were so good that they needed more of it.

My first question of course was centered on how they were tracking the results from the ads.  Tracking?  What tracking?  We know the ads are working because our guys say so, would be the common response.  The phone numbers in the ads were the sales branch phone numbers.  There was no way to electronically track the ads.  And asking the branch office to track the calls manually from the ads was in my experience giving the fox the keys to the hen house.  Manual tracking never works.

I’m always willing to give anyone the benefit of the doubt the first time out.  However, I recall my favorite Ronald Reagan line during his presidency: Trust But Verify.

I wanted to believe that the current advertising campaign was working too.  All I did was create tracking so that we could see just how many times the phone would ring at any branch office due to an ad.

Guess what?  The phone was not ringing much at all.  In fact, the ad campaign I was evaluating was bust.  The senior sales managers were surprised.  “How could this be?  Such a wide variance between what our sales guys were telling us?”

How does this happen?  It’s simple really.  There are more than a few sales professionals who have learned never turned down marketing support – even when it isn’t effective.  There’s a fear that if they told the truth, the valuable marketing investment on them would go away.

So next time you hear a sales person tell you that the marketing campaign is “working” or “we’re closing business with it”, trust but verify.