Strategies to Boost Your Sales - from Part 2 of the free webinar series, Accelerating Your Business Growth

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Accelerating Your Business GrowthWebinar Series

Presented by:

Guest speakers: Carleton Smith, SCORE Mentor, Austin ChapterPart 2 of 3: Strategies to Boost Your Sales

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About SCORE2

Douglas S. Cavanaugh

• Successful and experienced business owners and executives acting as volunteers

• Free mentoring:• One-on-one• E-mail

• Seminars and workshops• Resources for small

business: www.score.org

http://www.score.org/

Sales

Purchasing / Manufacturing Distribution

Finance

Marketing

Service Delivery

Program Overview

Marketing Your Business

Human Resources

Customer Service

Managing Operations

Growing Your Sales

Managing Your Time, People and

ResourcesFinancial Management

By the End of This Workshop, You Will Learn:

• How to choose effective distribution channels

• How to evaluate your sales process

• Who should be on your sales team

• How to motivate your sales team• How benchmarking can boost

your sales• How to implement sales and CRM

tools

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Marta E. Maxwell

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Expanding Your Distribution Channels


Understanding Distribution Channels

Distribution channels are how your product or service gets to the end user. Expanding distribution channels helps grow your business:• Builds brand recognition• Can decrease risk• Enables you to reach more

customers• Potential to increase profits

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Jennie Dundas & Alexis Miesen


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Direct

• Sales Team• Online• Catalog• Storefront

Indirect

• Wholesaler/Distributor/Dealer• Retailer• Affiliates• Value-Added Reseller (VAR)• Consultant• Manufacturer’s Rep

Multi-Channel/Hybrid

• Combination of Channels

Examples of Distribution Channels

Expanding Your Distribution Channels: Discussion

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Examples of Distribution Channels

What distribution channels are you currently using, and what have been the positive and negative aspects of using that method?

9Expanding Your Distribution Channels

Channel Choices

As you assess distribution options, consider:

• What are my customers’ needs?• How could your product/service meet those

needs?• Who is my ideal customer?• How can I find more of those?


Customer Needs Influence Distribution

How do customers expect to buy?

• Customers require information/service:

In-house sales team• Simple buying process: Online,

retail, catalog• Customers buy online:

E-commerce, resell to online retailer, affiliates

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Andrew Dunn


Research Distribution Channels

In addition to your customer needs, consider:

• Competitors• Geographic location• SWOT• Barriers to entry• Cost • Pricing/profit• Sales/marketing• Channel conflicts


Assess Options and Prioritize

• Ease of entry• Geographic proximity • Financial goals and risks• Estimated sales volume• Competitors’ positions• Management experience• Staffing capabilities


Choosing Channel Partners

• Identify potential partners• Establish partner relationship• Set goals• Train partner• Provide sales/marketing support• Minimize partner conflicts

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Marie Seipenko

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Evaluating Your Sales Process

Evaluating Your Sales Process15

Lead Generation

Prospecting

Customer/Client Contact

Negotiating

Closing the Deal

5 Steps to Sales

Customer service is key throughout the sales process.

Evaluating Your Sales Process: Activity

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5 Steps to Sales

Using the Sales Process Assessment worksheet, write down the methods you are currently using for your strongest and weakest steps Then include some challenges you face for each.

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Step 1: Lead Generation

Marketing can generate leads:• Advertising• Online (website, search engine

optimization, pay-per-click ads)• E-mail• Social media• Client/customer referrals• Trade shows• Direct mail• PR

Jennie Dundas & Alexis Miesen

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Step 2: Prospecting

Prospecting reaches out to leads using:• Phone/cold calls• Email• In-person networking• Social networking • Direct mail• Trade shows• Referrals

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Step 3: Contact

• Qualify the prospect

• Set initial meeting

David Lomakin

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Step 4: Negotiating

• Know your goals• Determine customer needs• Be prepared • Determine deal breakers• Create win-win situation• Build relationship

Douglas S. Cavanaugh Sr.

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Step 5: Closing

Tactics for Closing:•Understanding•Quality•Identify significance/value of product•Empathy•Know when to stop

Obstacles to Closing:•Price•Not decision-maker•Product/service not needed•Fear•Timing

22Evaluating Your Sales Process: Discussion

Step 5: Closing

Can anyone share closing challenges that you commonly come across, and/or closing tactics that have worked?

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Customer ServiceAcquiring a new customer costs 5 times more than keeping an existing one*

• Follow up• Resolve problems• Build relationships• Use CRM tools (Plaxo, Salesforce, Zoho)

to maintain customer history• Get referrals/testimonials• Sell additional products/services• Stay in touch*Source: Gallup

Katrina Markoff

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Your Sales Team

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Your Sales Team

Who Is Your Sales Team?

• You (Owners)• Existing Staff (performing other functions)• Your Website (e-commerce)• Dedicated sales staff• Outside consultants• Others?

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Your Sales Team

1

• Set measurable goals for each step of the sales process

2

• Know your ideal target customer

3

• Measure outcomes constantly and adjust accordingly

Setting Sales Goals

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Your Sales Team

Match Skills to the Sales Process

• What steps in the sales process are the most important for your business and why?

• What skills do your salespeople need to succeed at those steps?

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Your Sales Team

Sales Team Options

• Telemarketing• Dedicated Sales Team• Manufacturer's Reps• Retail Associates

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Evaluating the Needs of Your Business

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Evaluating the Needs of Your Business

Is It Right For You?

Now that we have reviewed sales team options, think about which options are right for you. Ask:• Will this help achieve my sales goals?• Will this reach my target customer(s)?• Will I be able to find qualified candidates

in my area? • Does this fit my budget?

– (Typically 3%-10% after 1-3 years)

31Evaluating the Needs of Your Business: Activity

Is It Right For You?

Using the Sales Teams Options Overview, complete the Sales Team Assessment worksheet to determine what will work best for your business.

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Motivating Your Sales Team

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1 •Set goals – for business and salespeople

2 •Performance measurements – for sales

3 •Payment formula – keep it simple

4 •Minimum base pay – higher for new employees

5 •Rules

Creating Your Sales Compensation Plan

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Commission-Only:

Motivates salespeople

Paying for results May be insufficient

for new salespeople Can alienate

salespeople Focus on quick sale Price-slashing Best for short sales

cycle

Salary-Only:

Can demotivate salespeople

Eases learning curve for new rep

Creates teamwork Invested in company

goals Suited for long sales

cycle

Commission vs. Salary

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Balancing Salary and Commission

Commission can range from 20% to 85% of salary

Factors to consider:• Sales cycle• Job duties• Tenure• Experience• Industry standards

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Bonuses• Additional incentive beyond commission

• Typically paid at year-end

• Graduated levels

• Keep it simple

• Make it motivating

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Sales Incentives• Non-monetary

• Contests or compensation

• Set clear goals and rules

• Best for short-term results

• Make it meaningful

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Developing Talent

Training and education options:

• Industry associations• Online courses and webinars• In-house training• Model best practices

Doug Zell

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Benchmarking Sales

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Benchmarking Sales

Why Benchmark?

Benchmarking = Comparing Performance benchmarking vs. Process benchmarking

Benchmark:1. Your past history2. The competition3. Your industry

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Benchmarking Sales

Determine processes/ measures

Gather data Assess data Adjust process/goals

4 Steps to Benchmarking

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Benchmarking Sales

Using Technology to Enhance Sales

Customer Relationship Management (CRM):• Differs from Contact Management• History of interaction• Share information• Create reports/forecasts• Spot trends• Time management• Consistent sales process

Choosing CRM Solutions: Simple and Scalable

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Helpful Resources

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Helpful Resources

Suggested Contact Management/CRM Software

• Infusionsoft CRM (www.infusionsoft.com/integrated-contact-manager)• Intuit QuickBase (http://quickbase.intuit.com)• Oracle CRM OnDemand

(www.crmondemand.com) • Plaxo (www.plaxo.com)• Sage CRM Solutions (www.sagecrmsolutions.com)

• Salesforce (www.salesforce.com)• SalesNexus (www.salesnexus.com)• Zoho (www.zoho.com/crm)

http://www.infusionsoft.com/integrated-contact-manager

http://quickbase.intuit.com/

http://quickbase.intuit.com/

http://www.plaxo.com/

http://www.salesforce.com/

http://www.salesnexus.com/

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Helpful Resources

Sales Resources

Sales Organizations•Direct Selling Association (www.dsa.org)•National Association of Sales Professionals(www.nasp.com)•Professional Society for Sales and Marketing Training (www.smt.org/)•Sales and Marketing Professional Association (www.smei.org)•Sales Force Effectiveness Benchmarking Association (http://sfeba.com)•Sales Lead Management Association (www.salesleadmgmtassn.com)

Sales Compensation Software•Callidus Software (www.callidussoftware.com)•Makana Solutions (www.makanasolutions.com)•Xactly (http://www.xactlycorp.com)

http://www.dsa.org/

http://www.nasp.com/

http://www.smt.org/

http://www.smt.org/

http://www.smei.org/

http://sfeba.com/

http://sfeba.com/

http://www.salesleadmgmtassn.com/

http://www.callidussoftware.com/

http://www.makanasolutions.com/

http://www.xactlycorp.com/

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Review

• Distribution channels are how the end user gets your product or service.

• There are 5 steps to the sales process: lead generation, prospecting, customer/client contact, negotiating, closing the deal.

• There are multiple ways to form, motivate and train a sales team, depending on the needs of your business.

• Benchmarking sales will allow you to see your progress.

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Keep up the workand

remember that nothing happens in a business until

you sell something and you get an order!

Q & A


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Smart Financial Management Wednesday, December 2, 11am Pacific Time

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