Sales audit for Increase Sales Effectiveness
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Transcript of Sales audit for Increase Sales Effectiveness
EVALUATING THE PERFORMANCE OF THE SALES ORGANIZATION
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Case for a comprehensive Sales Audit in the Life and General Insurance Agency Offices
Introduction
To operate effectively,management needs feedback on the effectiveness of its plans and the quality of its execution.
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Goals & Objectives
Implementingthe Selling
Effort
Sales Results
(Feedback)
Compare
ModifyControlling
theSelling
Function
Sales Plans
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The Sales Management Audit
The sales management audit is directed at individual sales people and at branch, district, regional, and other area managers.
Controlling the Selling Function: Feedback
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Operational challenges in Managing a Agency sales office
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Causes leading to this
• Excessive focus on results for the day ( hunting over farming)
• Unwarranted sense of urgency in recruitment SM and advisors leading to dilution of corporate policies
• Lack of structured approach in building pipeline for new clients
• Lack of quality engagement between agent and the Branch office
• Ineffective Sales activity tracking and supervision
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◊ Fix the agency operating model◊ Build strategic, long term non agency partnership◊ Incubate, experiment and develop alternative channels◊ Develop a customer centric operating model◊ Target customer / product white spaces◊ Go lean — “lean is in”
BCG has defined a six point action agenda for the life insurers journey ahead:
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BCG- Boston Consulting Group
The Problem statement of Sales Management
The Vicious cycle
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•MIS throws out loads of data and is left to discretion on interpretation
•Chances of subjective/Biased feedback from hierarchy down the lane
•Reviews focus on data and the agenda gets hijacked by few instances of bad or
good behavior
•Visits by top bosses yield good feedback but is limited by time constraints
•Also visits by top bosses is used as an opportunity to create good will/excitement
Limitations of Current Review Mechanism
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Management intentions need to be backed in equal measure by Mid level interventions and ground level actions.
Management must be able to exercise better control on the activities at the bottom of the pyramid and be in a position to drive its agenda after factoring the ground level feedback.
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SOLUTION
The Virtuous cycle
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•The sales function is the cornerstone of the future success of your business.
• It represents the front line for new business development and planned revenue
generation
•Your sales function performance can make or break the success of your company,
particularly in today’s evolving and demanding competitive marketplace.
What is your confidence level of your sales offices adhering to your corporate guidance on sales management Practices
How much does your sales plan solely rest on Human execution ? What are the odds of Potential to fail?
Do you have an acceptable amount confidence in their ability to consistently meet your company sales goals?
Even if your company is generally doing well, is it possible there are unexplained inconsistencies between the various members of your sales teams.
Is this uncertainty preventing your company from effectively planning and managing the production and financial resources of your company?
Points to Ponder Key Factactors
Most companies readily institute a comprehensive
financial audit to ensure strict adherence to your
company’s targeted financial policies, as well as to
provide an effective system of accountability. An
uncompromising commitment to this practice keeps
your company financially sound and strengthens
shareholder confidence. In the same spirit of
insisting on accountability and commitment, why
not audit your sales pipeline management process
and hold your sales staff just as Accountable?
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Similar to a financial audit, a Sales Performance Audit provides an across the board assessment of the three crucial area of any sales department: 1)Assessment of the current sales management resources (People), 2)Assessment of the current sales pipeline management process(s) (Process), and 3) Assessment of the current measurement metrics used with the current sales management process (Performance). 4)The culture of the office that holds the above three together
The Sales Performance AuditKey Factactors
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Sales Audit, your tool for exercising more control and bridge the Strategy-Execution Gap
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