Copyright © Bruce Ian Rasmussen, 2006 A Business Manager's guide to improving sales effectiveness.

Copyright © Bruce Ian Rasmussen, 2006

A Business Manager's guide to improving sales effectiveness


Sales Function Productivity Drivers

Sales Research- Market Understanding- Market Segmentation- Market Assessment- Market Prioritisation- Market Targeting

Investment & Organisation- Size- Structure- Deployment

- Product- Market- Activity

- Territory Alignment- Sales and Promotional Alignment- Inter Departmental Alignment

People- Selling Competencies- Recruiting- Training- Promotions- Coaching- Supervision- Motivation- Evaluation- Progression

Sales Systems- Compensation- Incentives- Benefits- Data Provision

- Lead Generation- Targeting

- Provision of Tools- Sales Methodologies- Sales Automation- CRM

- Provision of Process- Strategic Selling- Mentoring- Partnering- Consultative Selling


Market driven organisation

• definition:

“demonstrates a superior ability to understand, attract and keep valuable

customers”


Successful market driven organisations

• 3 key elements:

Customers

Collaborators

Competitors

Channels

Superior Ability to

Understand, Attract and

Keep Valuable

Customers

Configuration

- Focus on superior customer value

- Coherence of structures & systems

- Adaptability

Shared Knowledge

Base

Culture

is externally oriented

Capabilities- Market sensing- Market relating

- Strategic thinking


Turbulent Times

• more supply and less differentiation• more global and less local• more competition and more collaboration• more relating and less transacting• more sense-and-respond and less make-

and-sell


Services Marketing

“Making the Intangible Tangible”


Marketing Services - Not Products

• Intangible performances

• Customer involvement in production

• People are part of the product

• Quality control more difficult

• Harder for customers to evaluate

• No inventory

• Importance of time factor

• Different distribution channels


7 P’s of Services Marketing

Customers

Product (service)

Price

Promotion

Place & time

Participants Process

Physical Evidence


Planning, Creating & Delivering Services

Corporate Objectives & Resources

Market opportunity Analysis

Strategic Service Concept Statement

Market Positioning Statement

Service Marketing Concept

Resource Allocation Analysis

Service Delivery Process

Service Operations Concept


Value Propositions

“The value decade is upon us. If you can’t sell

top quality product at the world’s lowest

price, you’re going to be out of the game…

the best way to hold your customers is to

constantly figure out how to give them more

for less.”

- Jack Welch, Chairman, General Electric


Components Of A Selling Organisation


Components of a Selling Organisation


Measurement - People and culture

• knowledge

• competencies

• skills

• attitudes

• behaviours

• motivation


Measurement - People and culture

• salesperson success profile

• employee satisfaction

• turnover

• peer and subordinate reviews

• culture check


Measurement - Sales force activity

• account planning• targeting• calls• reach• frequency



• hours• coverage• maintenance• prospecting• needs assessment



• demonstrations• proposals• evaluations• solutions• customer service• “selling, servicing,

admin, other checklist”


Measurement - Customer results

• customer satisfaction

• customer retention• penetration• customer loyalty


Measurement - Customer results

• repeat rates

• complaints

• returns

• message

memorability


Measurement - Company results

• sales

• revenue

• profit

• orders


Measurement - Company results

• collections• sales per rep• market share• value perception• brand equity


Measurement - Importance and reliability

Measure Reliability

MeasureImportance

People & Culture

Sales Force Drivers

Customer Results

ActivityCompany Results


Selected Drivers


Sales Force Size

• size is independent of productivity• phased growth is rarely optimal

– increase when opportunity is realised– invest in the potential - role of market analysis

• gradual downsizing doesn’t work– morale– customers

• market deployment better than more resource


Methods of sizing sales force

• “same as last year”• financial method

– based on revenue forecast– BUT sales force investment drives sales

• competition parity– does the competition know what it is

doing?

• market-based approach– identify target customers– segment target customers– segment coverage strategy– sales force sizing


Best approach to sizing

1.use market-based method2.check with financial method3.do competitor check4.do target customer check

coverage, contact frequency, etc.


Sales force structures

• generalist– Managable product line– Similar approach - all customers

• market-based– Better effectiveness through customer knowledge– Can conflict with product strategy

• product-based– Large, complex product line– Independent or integrated

• activity-based– Hunter/farmer– HO/local– product/finance– Goal on individual AND team


Hiring

• skills that lead to sales success– Inate desire to serve– Strong work ethic– Integrity– Ability to put others at ease– Effective communication skills– Willingness to listen

• None of the above can be learnt!!


Value of Hiring Tools

2 interviews - 14% link between interview prediction and job success

Ability composite test 53%Tryout 44%

Data on Resume 37%Reference check 26%

Experience 18%Interview 14%

Training and Experience rating 13%Academic Achievement 11%

Education 10%Interest 10%

Age -1%


Best source for candidates

Referrals 48%Recruiters 31%

Competitors 10%College placement offices 9%

Newspaper ads 9%

Survey - Sales and Marketing Management magazine


Training - required competencies

• knowledge

• ability/capability

• skills


Training - knowledge

• product

• customer

• technology– Database, information management, tools, etc.

• company– Policy, values, culture, etc.


Training - ability/capability

• customer and industry research

• customer profitability maximisation

• develop best selling process

• quantitative analysis

• problem solving


Training - skills

• prospecting• needs identification• time management• territory management• listening• persuasion• presentation• negotiation• closing• account maintenance and expansion


Training - program enhancement

• rapid prototyping works

• individualised training is better

• active learning is better

• training modules structured around the actual business problems are better


Effectiveness/Efficiency tradeoff

Effectiveness

Efficiency

Self Study

ExternalSeminars

ClassroomParticipant

&observation

training

‘‘On-the-job’Training


Motivation

• 5 universal motivators

– achievement– social affiliation– power– ego gratification– survival


Motivating sales force productivity

• territory design• sales support• recruiting and promotions• training• compensation• recognition programs• coaching and supervision• communication• culture• company factors


ROI on sales training…

2%

3%

17%

15%

19%

44%

0% 10% 20% 30% 40% 50%

More than 1 year

7-12 months

3-6 months

2 months

1 month

Less than 1 month

Half Life of Sales Training

Copyright © Bruce Ian Rasmussen, 2006 A Business Manager's guide to improving sales effectiveness.

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