Every company wants a more effective sales force but few know where to start. Seeking quick results but unsure as to what is broken, sales leaders often launch a dozen or more initiatives simultaneously, hoping one of them is the real root of the problem.
Unfortunately, this approach often creates entirely new problems. Scarce resources are stretched thin. Sales teams, pulled in many directions at once, are unable to execute well. Results are typically poor when trying to focus on too many initiatives rather than three or four ideas that might really matter. As effectiveness slides, frustrated leaders must ask again, “What levers should I be pulling to boost performance?”
While the specific levers differ for every company, sales effectiveness issues can most often be traced to one or more of six very common culprits. Before launching any sales effectiveness initiatives, ask yourself the following three questions to maximize your chances of attaining good results.
- Is our field sales management effective in driving sales performance?
Companies aiming to improve sales effectiveness usually zero in on “fixing” the sales force but often the problems lie with the managers who lead them. We see it time and again: When a company with an average sales team hires a great manager, that manager elevates the performance of the entire team. The opposite is also true. When a team of superstar reps is led by a mediocre manager the performance slides and turnover increases.
Highly effective field sales management may be the single most important driver of overall sales force performance yet many companies don’t develop and tightly manage an effective sales management process. To begin, identify the skills and capabilities required for sales management success in your company, hire to those skills and then invest in proper development and training. Sales managers must be viewed, managed and measured with the same lens as salespeople: Are our sales managers helping their reps target and prioritize the right prospects? Are they coaching reps to help improve the win rate? Are they tracking metrics that measure the right behaviors and activities in the sales force and coaching to improve performance? Without excellent sales managers, even the best designed sales force effectiveness program will fail.
- Are our sales reps spending time on the activities and prospects most likely to generate incremental revenue?
Targeting and prioritization continues to be a top issue for sales forces. It comes down to this: Are your sales reps spending their time with the prospects that will generate the most incremental revenue and who are most likely to buy? It sounds basic, but we find most reps spend up to half their selling time pursing the wrong customers. These include prospects that are unlikely to buy, who have small incremental revenue potential, who are geographically convenient and who are “comfortable” because they are friendly. Growing incremental revenue requires spending more time selling to the highest priority targets.
A related problem is the limited time reps spend with customers. Time-use studies reveal many reps spend as little as 30%-50% of their time with direct customer/prospect selling activities, largely due to administrative burdens, corporate demands and lack of support. By freeing more of reps’ time to sell, then making targeting and prioritization activities a key part of coaching and metrics, sales reps can learn to re-direct their efforts and their expanded selling hours to prospects with the highest revenue/margin potential and the highest probability of buying. Sales managers often focus their coaching on point-of-sell messaging, but prioritizing who to pursue may be a more impactful lever.
- Do we fully leverage both hunting and farming activities to drive new revenue?
Any good revenue engine needs the right mix of revenue from winning new customers and from farming existing accounts. The right blend of hunting and farming activities will be different for every company and it is important to be intentional in creating it. Hunting involves knocking on new doors to drive new business; farming requires deepening relationships to further penetrate existing accounts. These are different activities that require different skill sets, different behaviors, different process and different metrics. Successful sales organizations leverage these differences to effectively target each prospect with reps whose skills match the opportunity.
Sales territories created by geography or industry without a real understanding of where revenue opportunities are and how they align with the assigned salesperson’s skill set usually produce lackluster revenue results. Hunting and farming skills are so dissimilar, they usually don’t reside in the same person. When organizations understand the hunting and farming requirements in their particular environment and differentiate those activities to match the skill sets of the sale team, revenues improve.
This article was originally posted to the Sales & Marketing Management Blog by Brad Wilsted and Ryan Tubman on April 27, 2015.
