Executing a Sales Force Turnaround
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TURNING
AROUND A WEAK
PERFORMING
SALES TEAMBy Erik Van Rompay
CASE STUDY PRESENTATIONParis, 8 october 2009
Actually available
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I am an interim
executive
specialised in
turning around
high-tech
companies
http://vanrompay.online.fr
WHO AM I ?
Act
ually
ava
ilable
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I present today 2 CASES…
“it is full part of my portfolio… but gives a
restricted view of my “360 degrees” turnaround activity”
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CASE 1 : Retail company (entertainment products)
SITUATION (view given by the board)
- sales revenue dropping since 2 years- an old product line at the end of life- new product line is a disaster (nobody wants it)
MY MISSION : restructure the activity so
the company can sell their new product line
Team = 9 sales people (+ 2 admin)
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STEP 1 : AUDIT
AUDIT 1 : Market situation
- Pricing of the product lines (old & new)- Comparison with the 2 main competitors
- Result : pricing + positioning are weak but OK
AUDIT 2 : Prospect Decision Criteria
Answering the question : Why does someone want to buy with us ?
18%35%28%19%
Oral skills
(& demo)
Written
documents
Sales
relationship
Brand name
and image
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STEP 1 : AUDIT
RESULT : - Brand name : poor as the company was a
newcommer (and did not deliver).- Brand image : poor (the sales reps didn’t even
posses a presentation of the company)- Sales relationship : poor (no methodology)- Written documents : poor -> one A4 sheet with
only text to present the new product line- Oral presentation : poor -> not prepared and
not consistent- Team : 9 individual sales people so 9 different
styles to sell the products
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AUDIT – case 1
AUDIT 3 : sales incentives
There was no sales incentive to sell the new product line !Even worse… the sales rep got 30% more revenue by selling the old products !
AUDIT 4 : product quality
Poor delivery & badly packaged (not sexy enough)
AUDIT 5 : Customer needs
OK (the first 2 users loved the new product)
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ONCE
YOU KNOW
THE PROBLEM
YOU HAVE THE
SOLUTION
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THE ACTION PLAN
CREATING A
VISUAL
IDENTITY
CREATING OF
A STRONG
SALES PITCH
CREATING A
MARKET
RECOGNITION
SOLVING OF
THE
INCENTIVES
ISSUE
EDUCATE THE
SALES REPS TO
SELL THE NEW
PRODUCT-LINE
Newcommer = Higher Innovation
Full Sales Documents Package
STRUCTURING
THE SALES
CYCLE
DELAY AUDIT+IMPLEMENTATION : 3 MONTHS
SALES ON SCOPE 3 MONTHS LATER
REPACKAGING
THE PRODUCT
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Also.. the 9 individual
sales people working
independently… became a
a united sales TEAM
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CASE 2 : Internet Startup
SITUATION (view given by the board)
- sales revenue dropping fast since 6 months- no software upgrade in the past 6 months
(unable to deliver new releases/bug repairs)- “we” are too expensive so we don’t sell our
products at the right price (so request to do heavy cost-cutting)
- Market with strong competition
MY MISSION : solve the problem
7 salespeople (+1 admin)
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STEP 1 : AUDIT
AUDIT 1 : Market situation
- Pricing of the product line- Comparison with the main competitors
Result : pricing + positioning are at market average so OK (for the time being)
AUDIT 2 : Prospect Decision Criteria
Answering the question : Why does he want to buy with us ?
18%35%28%19%
Oral skills
(& demo)
Written
documents
Sales
relationship
Brand name
and image
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AUDIT – case 2
RESULT : - Brand name : Strong (so OK)- Brand image : OK- Sales relationship : poor (no methodology)- Written documents : OK (just needed a slight
tuning)- Oral presentation : OK
Main problem identified:- no methodology to track prospects, neither to
identify the leads to track in priority
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AUDIT – case 2
AUDIT 3 : sales incentives
In line so OK
AUDIT 4 : product quality
- Poor delivery- Unstable product & unstable platform
AUDIT 5 : Customer needs/requirements
No time to execute- Several board members confirmed the
product itself was perfect…
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ONCE
YOU KNOW
THE PROBLEM
YOU HAVE THE
SOLUTION
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THE ACTION PLAN…1
CREATING OF
A NEW SALES
PITCHSOLVING OF
THE
TECHNICAL
PROBLEMS
EDUCATE THE
SALES REPS TO
IDENTIFY REAL
LEADS
STRUCTURING
THE SALES
CYCLE
DELAY AUDIT+IMPLEMENTATION : 2 MONTHS
SALES DID INCREASE…. But not enough
COST
CUTTING
NO
IMPLEMENT
SALES
REPORTING
LAUNCHING
OF A QUICK-
WIN to the
market as a
sign that the
company was
again
marketleader
…
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AUDIT 2 – Alignment
As we did not execute
AUDIT 5 : Customer needs/requirements
We didn’t identify a major “sales” problem :- all our documents and salespitch were made
for IT people (IT Directors, webmasters…) but it was mainly Marketing and/or Sales people that were deciding the purchase of our product.
SOLUTION : reworking all documents AND all the
sales pitches to have, depending on the client and
the decission process, a different sales approach.
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RESULT – case 2
Sales up by 70% after 6 months
The company catched up and sales numbers were again on scope as defined in the 3 years business plan.
To be noted : this all requested intensive changes …
and 5 of the 7 sales people left the company within
the year. This did not disturb the sales numbers
neither other activities in the company.
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If you have any
question…
don’t hesitate
to email me…
THANK YOU FOR YOUR
ATTENTION