Create and Maintain a Sales Culture. Buzz Raines – RVP, Region 6 Mike King – RVP, Region 16

Create and Maintain a Sales Culture

Buzz Raines – RVP, Region 6Mike King – RVP, Region 16

Objectives

Discuss how to create a CULTURE based on selling

Define the Sales Manager role and new responsibilities

Equip you to validate that the Sales Manager is:– Utilizing reports and systems – Coaching and training – Holding employees accountable

Agenda

What is a Sales Culture? Developing a culture of “selling” Four components of a successful sales

culture Management’s Focus on Execution

60 Years of Success!60 Years of Success!

Culture – “The attitudes and behaviors that characterize an organization.”

Two Facets of Our Business

Is it_______________?

A clean, stocked, safe store Greeting the customer quickly and

pleasantly Taking the customer to the product Prompt Phone Service Responding to a Customer Call Button

Are these examples of a sales culture …

…or examples of good customer service?

Sales CultureSales Culture vs.vs. Customer ServiceCustomer Service

In sales, what the customer first sees is Customer Service.

Customer Service is:

1. A clean, stocked, safe store2. Greeting the customer quickly and pleasantly3. Taking the customer to the product4. Prompt phone service5. Quick Response to customer call buttons

Sales Culture Goes Much Deeper

1. Qualifying2. Overcoming objections3. Selling the project, not just the product4. Closing the sale5. Customer follow-up6. Hiring the right people7. Teaching selling skills8. Setting goals and motivating9. Proper scheduling10. Tracking sales trends and micro-seasons

Too often, what’s supporting our Customer Service…

Custom

er

Custom

er

Sales CultureSales Culture

Service

Service

…doesn’t look much like a Sales Culture.

Benefits

Increased employee engagement Increased profit and margin Larger sales force

(More sales = More available payroll)

Potential Sales

59.6%

$489,620 = Average Sales Per Specialist

$1,488,000,000 = Topline Impact

$1,299,563

FOR YOUR STORE

$1,299,563

FOR YOUR STORE

Creating a SALES CULTURECreating a SALES CULTURE

the Programsthe Programs

the Strategiesthe Strategies

the Gearthe Gear

the Playersthe Players

the Playersthe Players

(plā ər) n. 1: a person who participates in or is skilled at some game 2: an important participant .

(plā ər) n. 1: a person who participates in or is skilled at some game 2: an important participant .

Sales ManagerSales Manager

Sales SpecialistSales Specialist

Store ManagerStore Manager

Management TeamManagement Team

“The wrong way….” video

Reenactment of how NOT to utilize the Sales Manager…to include the Sales Manager acting as MOD, building an endcap, driving a forklift, etc.

Sales Manager Role

Keypad Instructions

1 Per Person 10 seconds to respond Select one answer only

Please select a Team.

Answer Now

10

14%

14%

14%

14%

14%

14%

14% 1. Team MILLWORK2. Team APPLIANCES3. Team FLOORING4. Team CABINETS5. Team SOS6. Team INSTALLED7. Team COMMERCIAL

What percentage of time does your Sales Manager spend acting as MOD

on the floor?

Answer Now

10

0%

0%

0%

0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%

Survey Results

What percentage of time does your Sales Manager spend acting as MOD on the floor?

0%-25%

26%-50%

51%-75%

76%-100%

24.3%

41.5%

25.7%

8.6%

What percentage of your Sales Specialists do you feel are properly qualified for their current position?

Answer Now

10

0%

0%

0%

0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%

Survey Results

What percentage of your Sales Specialists do you feel are properly qualified for their

current position?

0%-25%

26%-50%

51%-75%

76%-100%

2.7%

14.1%

35.7%

47.5%

Which best represents the frequency you, the Store Manager, review specialty sales with your Sales

Manager?

Answer Now

10

0%

0%

0%

0% 1. Daily2. Weekly3. Monthly4. Never

Survey Results

Which best represents the frequency you, the Store Manager, review specialty sales with

your Sales Manager?

Daily

Weekly

Monthly

Never

51.3%

38.3%

7.0%

3.4%

Sales Manager Responsibilities

Recruiting and Hiring Specialists Train and Coach Drive Sales Sales Performance Accountability Specialist Meetings Production Office CBC programs

Sales Manager Role

Drive the Sales Culture– Hire, train and develop Specialists– Developing and training specialists

Performance Management– Monitor Specialist/Customer relationship– Meet sales goals– Reward good performance and recognize

poor performance

Sales Manager Role

Schedule Sales Specialists to ensure coverage

Validate customer follow-up– Understand and satisfy customer needs– Earn repeat business– Must happen EVERY DAY!– Closing the sale

Sales Specialists

2005 Store turnover = 44.4%2005 Sales Specialist = 40.2%

(8807)

8807

X 4000

$35,228,000

Sales Specialist Selection Tool

“I don’t work for that company…..” video

Reenactment

Store Manager Role

Support– Attend Specialist meetings– Recognize and rewarding great

performance Validation

– Sales Manager Accountability– Sales Specialist Accountability

Awareness Passion

Store Manager Role

“We are what we repeatedly do. Excellence then, is not an act,

but a habit.”

Aristotle

Team Scores

0 Team 1

0 Team 2

0 Team 3

0 Team 4

0 Team 5

0 Team 6

0 Team 7

the Strategiesthe Strategies

(străt’ ə -jē ) n. The science and art of using all the forces available to execute approved plans as effectively as possible.

(străt’ ə -jē ) n. The science and art of using all the forces available to execute approved plans as effectively as possible.

Close the SaleClose the Sale

Celebrate the SaleCelebrate the Sale

Qualify the SaleQualify the Sale

Which best represents the frequency your Sales Manager holds Sales

Specialist meetings?

Answer Now

10

0%

0%

0%

0% 1. Weekly2. Bi-weekly3. Monthly4. Never

Survey Results

Which best represents the frequency your Sales Manager holds Sales Specialist

meetings?

Weekly

Bi-weekly

Monthly

Never

80.4%

11.4%

6.3%

1.9%

Which best represents the percentage of time you (Store Manager) or the Operations Manager attends Sales

Specialist meetings?

Answer Now

10

0%

0%

0%

0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%

Survey Results

Which best represents the percentage of time you (Store Manager) or the Operations

Manager attends Sales Specialist meetings?

0%-25%

26%-50%

51%-75%

76%-100%

48.0%

20.9%

13.8%

17.3%

5 Steps of the Sale

Greet

Qualify

Features and Benefits

Overcome Objections

Close the Sale

Strategies

Observe the specialists as they interact with the customer

Celebrate sales!– Morning Huddles– Tuesday Sales Meeting– Wednesday Specialist Meeting– NOW!

Store Manager Performance Guide

•Attend Sales Specialist meetings

Strategies

Close Rate - Appliances

Lowe’s Close Rate = 53%

Competitors Close Rate Home Depot = 40%Best Buy = 41%Sears = 64.7%

Close Rate - Flooring

Lowe’s Close Rate = 53.1%

Competitors Close Rate Home Depot = 57.4%

Close Rate – Kitchen Cabinets

Lowe’s Close Rate = 52.2%

Competitors Close Rate Home Depot = 60.8%Sears = 73.7%IKEA = 79.5%

Close Rate - Millwork

Lowe’s Close Rate = 44.4%

Competitors Close Rate Home Depot = 51.1%Menard’s = 58.3%

What if___________?Category Lowe’s close

rateTop industry

close rateIncremental sales,

if we closed at benchmark*

Appliances 53% 64.7%

Flooring 53.1% 57.4%Kitchen Cabinets 52.2% 79.5%

Millwork 44.4% 58.3%Installed Sales (combined) 51.3% 75%

Total

* Based on 2005 sales

$471,526,665

$124,762,484

$500,283,592

$410,108,250

$609,226,506

“Waiting for the call…” video

How do we improve close rate?

CALL THE CUSTOMER! Leverage sales promotions Offer services Credit/Quick Screen Sales Manager validation Follow-up

CALL THE CUSTOMER!

1.12.21.13.31.13.4

1.12. 2, F10, then F5

F5

1.12.2 , F4

F4

1.12. 2.

How do I reassign an estimate to a new sales person?

1. Select Estimate , Shift F92. Shift F13. Tab to Salesperson number, change to new

salesperson number4. F9 (Three Times)5. F10 Save Estimate6. F9

1.12.2

1.12.2

1.13.3

1.13.3

1.13.4

1.13.4

Team Scores

0 Team 1

0 Team 2

0 Team 3

0 Team 4

0 Team 5

0 Team 6

0 Team 7

the Programsthe Programs

(prō grăm) n. A series of steps to be carried out or goals to be accomplished. (prō grăm) n. A series of steps to be carried out or goals to be accomplished.

SOS SOS

Installed SalesInstalled Sales

Commercial SalesCommercial Sales

On a monthly basis, my Sales Manager allows a minimum of 4 hours for me to train on product and/or selling skills.

Answer Now

10

0%

0%

0% 1. YES2. NO3. UNCERTAIN

Survey Results

On a monthly basis, my Sales Manager allows a minimum of 4 hours for me to train on

product and/or selling skills.

YES

NO

UNCERTAIN

51.9%

28.7%

19.4%

The production office gets completed details back to me on the day they are

returned from the installer_______________ of the time.

Answer Now

10

0%

0%

0%

0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%

Survey Results

The production office gets completed details back to me on the day they are returned from the installer_______________ of the time.

0%-25%

26%-50%

51%-75%

76%-100%

12.5%

10.0%

19.0%

58.4%

What percentage of our stores consistently print and call every

customer contact from the monthly prospect mailers?

Answer Now

10

0%

0%

0%

0% 1. 10%2. 35%3. 65%4. 80%

35%

2006 Commercial Sales Initiatives

Store Manager/District Manager Execution of The Commercial Business

Management System Execution of the daily Checklist Staffed to matrix for Commercial Sales and

all support groups Entire store is aware of Commercial Program

and the role of each management position

2006 SOS Initiatives

Store Manager/District Manager Make sure all sales positions are staffed

with sales-oriented associates that know the product

Ensure all sales associates are certified in SOS

Ensure the Mgmt Team is setting the example to offer SOS and to ask for the entire project 

Support the SOS program by recognizing outstanding performance  

2006 Installed Sales Initiatives

Store Manager/District Manager Ensure Specialists & Production Office

staffed to matrix Ensure Sales Manager position filled with

qualified individual who is capable of achieving specialty sales goals

Ensure appropriate corrective action is taken on all exceptions”

Ensure you and your store team develop a strong working relationship with your installers

Team Scores

0 Team 1

0 Team 2

0 Team 3

0 Team 4

0 Team 5

0 Team 6

0 Team 7

the Gearthe Gear

(gîr) n. Equipment consisting of miscellaneous articles needed for a particular operation.

Commercial Business Management System

Reports

Lowe’s Learning Center

Sales Manager Pocket Card

Pocket Guides

Sales Card

Which best represents the frequency your Sales Manager discusses

customer follow-up and current status on pending items in Lead

Management?

Answer Now

10

0%

0%

0%

0% 1. Daily2. Weekly3. Monthly4. Never

Survey Results

Which best represents the frequency your Sales Manager discusses customer follow-up and current status on pending items in

Lead Management?

Daily

Weekly

Monthly

Never

48.9%

42.2%

4.5%

4.4%

My Sales Manager reviews my close rate on all detail fees.

Answer Now

10

0%

0%

0% 1. YES2. NO3. UNCERTAIN

Survey Results

My Sales Manager reviews my close rate on all detail fees.

YES

NO

UNCERTAIN

55.1%

14.8%

30.2%

My Sales Manager discusses my sales performance with me at least weekly,

with recommendations for improvement if needed.

Answer Now

10

0%

0% 1. YES2. NO

Survey Results

My Sales Manager discusses my sales performance with me at least weekly, with

recommendations for improvement if needed.

YES

NO

71.3%

28.7%

Commercial Business Management System – Phase II

Features Electronic Processing

of Customer Follow-up

Addition of a Margin Column per Customer

Automatic Sorting of Customers’ sales year-over-year

BenefitsPaperless

Easier for Management to Review

Analyze margin on the account to ascertain if we are project selling

Instant evaluation of year-over-year sales

Reports Specialist Performance Report

Page 2 Specialist Performance ReportData shown for ‘Last 4 Weeks’ represents payroll periods 6/19/2004 through 07/16/04. YD data include all information since 12/20/03.

Grimes, Michael 49.5 6/21/1999 37.8 $172.076 $39,986 $1,974 26.6% $1,129,772 $232,872 $19,820 25.4%

LAST 4 WEEKS YEAR-TO-DATE

Loc Employee Avg Hrs Hire Months in Total SOS Installed Margin Total SOS Installed Margin

Last 4 wks Date Position Sales Sales Sales Sales Sales Sales

District

APPLIANCES

Total

Sales

Page 1

Avg for APPLIANCES 21.2 $84,419 $10,685 $3,266 26.2% $514,718 $75,826 $22,644 25.4%

Months in Total SOS Installed Margin Total SOS Installed Margin Position Sales Sales Sales % Sales Sales Sales %

LAST 4 WEEKS YEAR-TO-DATE

Reports

Specialist Exception Report

Reports Top 25 Sales Specialists

Reports

Reports (1.13.9)

Lowe’s Learning Center Selling Skills Focusing on the Close Product knowledge courses

Sales Manager Pocket Card

Sales Manager Top 5 Measures of Success

Observe Sales Manager’s interaction with SpecialistDiscuss/Review Progress vs. Budget with Sales ManagerDiscuss/Review Vital Stats with Sales ManagerDiscuss/Review Specialists performance to budget with Sales Manager and conduct

follow up as neededReview Lead Management/Order Management systems with Sales Manager

Sales Manager Top 10 Follow-Up Activities

Review and sign off on Sales Managers Daily, Weekly, and Monthly checklistAttend Weekly Specialist meeting and be sure the following occur:Review Customer Complaint Log BookVerify Commercial Sales Daily Checklists is completeVerify that Sales Manager and Administrative Manager partner to monitor SOS marginVerify that Weekly Specialist Meetings are not held on Monday’s or Friday’sEnsure Specialists are monitored by the Sales Manager through LMS and OMSEnsure Sales Manager promotes and monitors training for all Specialists and CSA’s in

their responsible departmentsStore Manager and Sales Manager has made arrangements for the “How To’ clinics

for the weekObserve that the Sales Manager leads by example when it comes to Customer

Service

Pocket Guides/Sales Card

Pocket

Sales

Guide

Team Scores

0 Team 1

0 Team 2

0 Team 3

0 Team 4

0 Team 5

0 Team 6

0 Team 7

creating a SALES CULTUREcreating a SALES CULTURE

the Programsthe Programs

the Strategiesthe Strategies

the Gearthe Gear

the Playersthe Players

“What happens when it all comes together…..” video

Focused on Execution

Instill the Sales Culture in your employees Sales Manager Role

– Drive Sales- Big 3

– Recruit, hire, train, develop Specialists– Monitor Sales Performance

Store Manager Role– Support the Sales Manager’s Role– Validate

Tools

THANK YOU!THANK YOU!

Please leave your keypads on the table