Sales Force Management

www.markplusinstitute.com

MARKPLUS INSTITUTE OF MARKETING

Segitiga Emas Business Park, CBD B 01/01 ▪ Jl. Prof. Dr. Satrio kav. 6 ▪ Jakarta 12940 – Indonesia

Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268

SALES FORCE MANAGEMENT

BOOSTING SALES PRODUCTIVITY

through Productivity Driven Sales Force Management

Session 1

Executive Summary: The Five Pillars that Drives Company Sales Productivity

Eka J. Budhiman

Exclusive Facilitator

MarkPlus Institute of Marketing

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Areas of Expertise

� Sales & Distribution

� Strategy & Marketing

� Brand & Communication

� Product & Pricing

� Service & Loyalty

Related Experience

� Coach – Bong Chandra Schools for Billionaires

� Lecturer – BINUS Business School, RAFFLES Design Institute, President University

� Marketing Manager – PT Cordlife, Indonesia

� Marketing Support Manager – PT Sinar Sosro, Indonesia

� Product Manager – PT Kawan Lama Sejahtera, Indonesia

� Operation Manager – UBM Engineering Service Pte. Ltd., Indonesia

� Sales Manager – Inter-Continental Hotel, Indonesia

Eka J. Budhiman



Meet The Speaker


Training Agenda

SESSION DAY 1 DAY 2

I

09.00 – 10.30

Executive Summary: The Five Pillars

that Drives Company Sales ProductivitySales Compensation

10.30 – 10.45 Coffee Break

II

10.45 – 12.00Recruiting The Sales Force Training The Sales Force

12.00 – 13.00 Lunch Break

III

13.00 – 15.00Structuring The Sales Force Performance Management


IV

15.15 – 17.00Sales Force Sizing Motivating The Sales Force


Training Agenda

SESSION DAY 1 DAY 2

I

09.00 – 10.30




II



III



IV



PERUSAHAAN DAPAT MEMPEROLEH PENJUALAN YANG LEBIH TINGGI MELALUI…

Input Lebih BanyakLebih banyak sales people

Lebih banyak anggaran promosi

Produktifitas Lebih

Tinggi

Biaya Lebih Tinggi

Penjualan Lebih Tinggi

Profit Lebih???

Biaya Sama

Penjualan Lebih Tinggi

Biaya

Penjualan

Profit Profit Lebih

ATAU

Why is Sales Force Management Important?


INVESTASI DALAM SALES FORCE AKAN MENJADI PERCUMA

BILA TIDAK DAPAT MENGHASILKAN PROFIT

Cost CenterKetika investasi dalam sales force

tidak lagi efektif untuk

meningkatkan penjualan dan

profit

Profit CenterKetika setiap aktifitas dapat

menghasilkan peningkatan

penjualan dan profit

ATAU

SALES FORCE DAPAT MENJADI



OLEH KARENA ITU,

PERUSAHAAN SEBAIKNYA

MENINGKATKAN PRODUKTIFITAS.

DOING THE THINGS RIGHT

DOING THE THINGS WRONG

DOING THE RIGHT THINGSDOING THE WRONG THINGS

PRODUCTIVE

Inefficient

Ineffective

“Productivity is never an accident. It is always the result of a commitment to excellence, intelligent

planning, and focused effort.”

(Paul J. Meyer)



NAMUN PERUSAHAAN TIDAK LAGI BISA

BERGANTUNG KEPADA 1 (SATU)

SALESPERSON YANG PRODUKTIF

Penjualan

Penjualan

Penjualan

Beberapa perusahaan menggantungkan kinerja

penjualan kepada 1 (satu) salesperson super

Salesperson super biasanya memiliki dominasi lebih

besar daripada salesperson lainnya

Apakah Anda lebih memilih:

Memiliki 1 (satu) salesperson super untuk

mendorong terciptanya profit bagi perusahaan

ATAU…

Memiliki organisasi penjualan super yang dapat

mendorong salesperson biasa menjadi berkinerja

tinggi ???



Discussion

What is SALES FORCE MANAGEMENT?

1 2 543


PERUSAHAAN SEBAIKNYA MEMBERIKAN PERHATIAN

LEBIH KEPADA SALES FORCE MANAGEMENT

Tidak lagi bisa

bergantung kepada

salesperson berbakat

Hasil penjualan

berhubungan lurus

dengan kapabilitas dan

motivasi salesperson

Menyewa “bintang”

dari perusahaan

pesaing menjadi mahal

Sistem yang

memungkinkan setiap

salesperson untuk

berkinerja baik

Standard untuk

mengembangkan

kapabilitas dan

memelihara motivasi

Prosedur terstruktur

yang dapat

menghasilkan

“bintang”

Sales Force

Management

What is Sales Force Management?


Common Mistakes in Sales Force Management

Hanya fokus

pada penjualan

� Pengembangan kompetensi salespeople diterlantarkan

� Kinerja salespeople hanya bergantung pada kinerja penjualan saja

� Motivasi salespeople tidak dipelihara

Kurang kendali� Aktifitas sales force tidak dipantau

� Kurang pengawasan, salespeople jarang diarahkan oleh

manajemen

Peran tidak jelas� Struktur penjualan tidak didefinisikan dengan baik

� Tidak ada rincian pekerjaan dan peran salespeople yang jelas


JADI, UNTUK MENCAPAI

SUKSES, PERUSAHAAN HARUS

MEMILIKI MANAJEMEN DAN

SALES FORCE YANG BAIKWaste Thrive

Disaster Failure

PEOPLE

COMPANY

Good

Management

Bad

Management

Good

Performance

Bad

Performance


Marketing

Investment

Customer

ContactSales

Efficiency Effectiveness

Source: Zoltners, Andris A., Prabhakant Sinha, Greggor A. Zoltner, The Complete Guide to Accelerating Sales Performance

Sales Efficiency & Effectiveness


ZOLTNERS –

COMPONENTS OF A SELLING ORGANIZATION

Sales Force

Investment

� Salespeople

� Expenses

� Sales Support

Expenses

Sales Force

Activity

� Customer

Attraction

� Retention

Process

Company

Results

� Sales

� Profit

� Market Share

� Short term

� Long Term

People &

Culture

Customer

Source: Zoltners, Andris A., Prabhakant Sinha, Greggor A. Zoltner, The Complete Guide to Accelerating Sales Performance

Components of A Selling Organization


Sales Force Drivers

� Sales Research

— Market understanding, define

needs

— Market segmentation

— Market assessment

— Market prioritization

— Market targeting

� Investment and Organization

— Size

— Structure

— Deployment: product, market,

activity

— Territory alignment

— Sales and marketing coordination

� People

— Selling competencies

— Recruiting

— Training

— Promotions

— Coaching

— Supervision

— Motivation

— Evaluation

— Progression

� Sales System

— Compensation

— Incentives

— Benefits

— Provide data:

— Lead generating

— Targeting

— Provide tools:

— Precision selling

— Automation

— Provide processes:

— Strategic selling

— Mentoring

— Partnering

— Consultative selling

People & Culture Customer ResultSales Force Activity Company Results

Create sales force with:

— Product knowledge

— Market knowledge

— Selling skills

— Efficient time utilization

— Motivation

And sales management team that

creates an atmosphere of success

through

— Coaching

— Feedback

— Recognition

— Training

While retaining good people and

creating a “success” culture through

appropriate shared values

The sales force engages in a selling

process:

— Find

— Understand

— Prioritize

— Target

— Assess needs

— Communicate

— Listen

— Persuade

— Present

— Negotiate

— Close

— Maintain and expand

Creating:

— Customer solutions

— Customer satisfaction

— Customer delight

— Sustainable, profitable

relationship, both new and

existing

Company factors:

— Product offering

— Pricing

— Service

— Channel strategy

— Marketing

Contributing to:

— Sales

— Profit

— Market share

— Short term

— Long term

Environment:

— Market growth

— Competition

— Consolidation

— Government

— Technology

— Chaos

Components of A Selling Organization


Strength and Weakness of Zoltners’ Theory

Teori produktifitas sales

Model komprehensif

Pemaparan terperinci

Tidak konsisten

Banyak elemen yang belum

dimasukkan ke dalam kategori

Pemasaran merupakan bagian dari

penjualan


Training

Sales Force

Structure

People Development

Organizational Development

PRODUCTIVITY

Efficient Resources Effective Results

Sales Force

Sizing

Sales Force

Management

SELLING ACTIVITY

Customer Result

� Customer satisfaction

� Customer loyalty

� Customer referral

Company Result

� Sales & profit

� Market share

� Growth

Lower Input Higher Output

Effective selling activity will result in two ways, direct result (company result) and indirect result (customer result) which

lead to other sales

To be productive, company should develop selling strategy that efficiently

converts sales investment into effective result

Efficient resource management ensures that every sales person is working optimally align with his/her capacity. In managing efficiency, company should consider organizational and

people development.




Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




Session 2

Recruiting The Sales Force

Eka J. Budhiman



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Training Agenda

SESSION DAY 1 DAY 2

I

09.00 – 10.30




II



III



IV



Strategi penjualan yang sempurna, bila tidak

didukung oleh orang yang tepat, akan menjadi

upaya sia-sia

Merekrut salespeople merupakan keputusan paling

krusial yang dibuat oleh Sales Manager

Why is Sales Recruitment Important?


HIRING

Company Result

CultureManagers

Recruitment Effect


COMPANY RESULT

Merekrut terlalu banyak salespeople dengan kinerja di

bawah rata-rata dapat merusak moral salespeople

dengan kinerja yang baik

Upaya rekrutmen yang kurang baik akan menghasilkan

salespeople dengan kinerja rata-rata atau bahkan di

bawah rata-rata dalam jumlah yang merugikan

perusahaan

Recruitment Effect


1. Menyelesaikan konflik

2. Mengalokasikan sumber daya

3. Riset pasar

4. PHK

5. Menetapkan sasaran individual

6. Coaching

7. Melakukan evaluasi

7. Melakukan upaya penjualan

8. Memimpin

9. Memberikan pelatihan

10. Merekrut

11. Memotivasi

12. Bepergian

13. Melakukan analisis

MANAGERS

TANGGUNG JAWAB:TANGGUNG JAWAB:

Recruitment Effect


CULTURE

Salespeople yang berhasil dapat menjadi “pahlawan”

bagi perusahaan mereka

Perusahaan dapat mengembangkan cerita legenda dan

kisah sukses mereka

Salespeople yang baru direkrut dapat mempengaruhi

budaya yang ada dan menciptakan budaya masa depan

Recruitment Effect


Sumber: Monash Marketing Dictionary

“Sales Recruitment is identifying appropriate sources of sales

personnel and attracting applicants to the firm”

What is Sales Recruitment?


SUCCESSFUL

Menciptakan hubungan yang baik

Sales force yang termotivasi

Sales call berkualitas tinggi

Banyak personal selling

Turnover rendah

Sedikit gangguan

UNSUCCESSFUL

Merusak citra perusahaan

Sales force bermotivasi rendah

Sales call berkualitas rendah

Sedikit personal selling

Turnover tinggi

Banyak gangguan

Successful vs. Unsuccessful Recruitment


What are the characteristics

of successful salespeople?

Discussion


Ambitious

Motivated

Go-getter

Takes initiative

Hard-working

Ego-driven

Goal-oriented

Competitive

Enthusiastic

Disciplined

Follows through

Independent

Customer-oriented

Organized

Diligent

Self-confident

Secure

Assertive

Persistent

Thick-skinned

Decisive

Adaptive

Flexible

Spontaneous

Knowledgeable

Experienced

Educated

Problem solver

Techno-capable

Analytical

Likeable

Sociable

Empathic

Responsive

Outgoing

Personable

Has integrity

Trustworthy

Good listener

Articulate

Perceptive

Persuasive

Creative

Intuitive

Leader

Successful Salespeople Characteristics


Step 1• Job Definition

Step 2• Candidate Profile

Step 3• Applicant Pool

Step 4• Selection

Step 5• Attraction

Step 5• Evaluation and Improvement

Recruitment Steps


Video : (Recruiting)

CLICK IN THE MIDDLE FOR PLAYING


1

TUJUAN DAN SASARAN PEKERJAAN SALES:

� PENJUALAN

� PROFIT

� PANGSA PASAR

� ORDER

� PENCIPTAAN NILAI BAGI PELANGGAN

� KEPUASAN PELANGGAN

Job Definition

Recruitment Steps


1

AKTIFITAS YANG DIPERLUKAN :

� Menemukan prospek baru

� Menjalin hubungan dengan pelanggan

� Pelaporan (administrasi)

� Evaluasi kondisi pasar

� Pengetahuan produk, pelanggan, dan pasar

� Menerima order dan memberikan solusi

� Mengembangkan kemitraan

� Manajemen teritori

Job Definition

Recruitment Steps


MENGUKUR

PENCAPAIAN:

� Pengukuran kuantitatif

� Evaluasi kualitatif

� Management by Objective (MBO)

1 Job Definition

Recruitment Steps


2

MENENTUKAN PROFIL:

� Pengalaman

� Analisis pekerjaan

� Analisis statistik

Candidate Profile

Recruitment Steps


3

SUMBER KANDIDAT:

• Referensi

• Rekrutmen kampus

• Agensi

• Rekrutmen via web

• Web headhunter

• Lowongan pekerjaan

• Aplikasi yang masuk

• Bursa kerja

• Mantan pegawai

Applicant Pool

Recruitment Steps


PERTANYAAN KUNCI:

1. Apakah kandidat dapat melakukan

pekerjaan dengan baik?

2. Apakah kandidat cocok bekerja dengan

perusahaan?

4CARA UNTUK MENDAPAT JAWABAN

PERTANYAAN KUNCI:

• Wawancara

• Tes

• Referensi

• Pemeriksaan latar belakang

• Konsultan

• Kontrak sementara

• Perbincangan informal

Selection

Recruitment Steps


5

TERDIRI DARI:

PENAWARAN

UPAYA TINDAK LANJUT

Attraction

Recruitment Steps


5

Penawaran terdiri dari pekerjaan itu sendiri dan karakteristik yang membuat

pekerjaan tersebut menjadi menarik

� PELUANG KARIR

� PAKET KOMPENSASI

� BENEFIT

� PERUSAHAAN DAN BUDAYA

� KOLEGA

� PRODUK

Attraction

Recruitment Steps


5

Upaya tindak lanjut adalah bagaimana cara mengkomunikasikan dan mengelola

penawaran kepada kandidat

MENINDAKLANJUTI DENGAN BAIK:

� Membiarkan kandidat mengemukakan apa

yang diinginkan

� Jangan melupakan kandidat setelah

memberikan penawaran

� Menindaklanjuti penolakan

Attraction

Recruitment Steps


Analisis statistik secara berkala (tahunan) untuk mendapatkan gambaran

mengenai keberhasilan proses

6

Perusahaan yang baik secara berkelanjutan akan meningkatkan proses rekrutmen

yang dimiliki dengan mengumpulkan dan menggunakan umpan balik yang diterima.

Mengevaluasi dan

meningkatkan performa

proses rekrutmen melalui:

Evaluation and Improvement

Recruitment Steps




Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




Session 3

Structuring The Sales Force

Eka J. Budhiman



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Training Agenda

SESSION DAY 1 DAY 2

I

09.00 – 10.30




II



III



IV



Compensation

TrainingSales

Manager

HiringProductivity

Enhancement

Programs

STRUCTURE

Structure mempengaruhi banyak keputusan tentang sales force

Why is Sales Force Structure Important?


• Perusahaan dapat

bereaksi cepat terhadap

perubahan produk dan

pasar

• Struktur dikatakan adaptif

jika terjadi perubahan

proses penjualan karena

fluktuasi produk atau

pasar

Adaptability Efficiency Effectiveness

• Struktur sales force

mempengaruhi

penggunaan sumber daya

(jumlah salesperson)

• Mencerminkan tingkatan

di mana sales force

mengkonversi investasi

menjadi calls

• Merepresentasikan

respon potensial dari

pelanggan terhadap

aktivitas penjualan

• Struktur mempengaruhi

deskripsi pekerjaan dan

kompetensi salesperson

untuk memprospek

pelanggan secara efektif

Sales Force Structure Objective


Product-Based Organization

- Broad product line

- Diverse products

- Complex products

Market-Based Organization

- Many market segments

- Many diverse buyers and influences

- Complex markets

Activity-Based Organization

- Many activities

- Different activities

- Complex activities

Generalist

Mixed

Organization

Alternatives in Sales Force Structure


1 GENERALIST

• Setiap salesperson menjual seluruh lini produk perusahaan kepada seluruh

pelanggan pada area geografi yang ditetapkan

• Struktur yang paling efisien

• Cocok jika perusahaan menjual lini produk yang sederhanan dan proses

penjualannya relatif sama

• Pengetahuan yang dalam dari segi ekonomi, budaya, and kompetisi di teritori

• Memiliki teritori penjualan yang lebih kecil, waktu perjalanan yang lebih sedikit,

banyak waktu untuk bertatap muka dengan pelanggan

• Efektifitas kecil

• Adaptability kecil



2 MARKET BASED

• Melibatkan pelanggan

• Efektif melalui pengetahuan terhadap pelanggan

• Memastikan bahwa setiap pasar menerima alokasi sumber daya

penjualan yang tepat

• Sangat adaptif terhadap perubahan pada kebutuhan dan perilaku

pembelian pelanggan

• Dapat mengarah kepada konflik dengan product-based marketing

organization

• Akuntabilitas atau manajemen kinerja dapat menjadi relatif kecil



SOURCE OF HETEROGENEITY POTENTIAL SALES FORCE STRUCTURE

Industry The sales force is organized around industries

Geography

Regions of the country may be sufficiently

different to warrant their own sales force

Regionalization structure: the sales force is organized by regions.

Each regional manager is responsible for all of the selling tasks in the region

Account size

High/low sales volume

High/low sales potential

High/low profitability

Large accounts are assigned to a major account team; smaller accounts are assigned to a

generalist team.

Telephone or internet selling can be used for small accounts, especially those in remote

locations.

Selling vs. maintenance

New accounts/existing accounts

Sales/servicing

The sales force is split into a selling team and a maintenance team, sometimes called

“hunters” and “farmers.”

Multiple buyers with different needs at the

account site

Customer-focused selling teams service the accounts’ needs. The teams include an account

manager who manages the relationship and is assisted by product specialists, financial

specialists, market analysts, and distribution/logistic specialists.

Very large accounts

Vertical selling teams can be employed to focus on an individual account, supplying its entire

product and service needs.

Manufacturer-supplier partnering may require special efforts.



3 PRODUCT BASED

• Tim produk dengan spesialisasi tertentu membantu mendiferensiasi lini

produk yang kompetitif

• Sales force yang ahli dalam hal produk (sesuai dengan marketing

organization structure)

• Cocok jika perusahaan memiliki lini produk yang banyak, kompleks dan

beragam

• Menghindari konflik positioning saat salesperson harus menjual lini

produk yang berbeda

• Kurang efisien, seorang pelanggan bisa diprospek dua salesperson atau

lebih



Integrated Specialist Model

(preferred model)

VP Sales

Specialist

A

Specialist

B

Nonintegrated Specialist Model

VP Sales

For A

Specialist

A

VP Sales

For B

Specialist

B


1

2


4 ACTIVITY BASED

• Sangat bergantung kepada produk dan pasar perusahaan

• Ketergantungan yang kuat dalam tim

• Kebutuhan pelanggan yang berbeda dalam setiap siklus pembelian

membutuhkan keahlian menjual atau perilaku melayani yang

berbeda dari sales force

• Fungsional, merefleksikan siklus pembelian pelanggan

• Membutuhkan kompetensi yang terpisah dan tidak overlapping



5 MIXED BASED

• Adaptif, disesuaikan dengan organisasi pelanggan dan proses

internal

• Sangat efektif

• Membutuhkan koordinasi internal yang lebih kuat

• Efisiensi kurang



GeographyGeography

Financial Services

Government

Health Services

National/major Accounts

Commercial Business

Solution selling and Driving New

Business

Maintaining and Penetrating Existing

Accounts

Supporting Account Managementand

Maintenance

East Midwest South West

Segments

Activities

A Mixed Cube



GENERALIST

MARKET-BASED

PRODUCT-BASED

ACTIVITY-BASED

MIX

� The most efficient structure

� In-depth knowledge of economic, cultural, and competitive conditions in territory

PROS CONS

� Low effectiveness

� Low adaptability

� Effective through customer knowledge

� Highly adaptive to changes in customer needs and buying behavior

� Can lead to conflict with product-based marketing organization

� Accountability of performance management can be low

� Product expertise sales force (inline with marketing organization structure)

� Avoid positioning conflicts when a sales person have to sell different product line

� Less efficient � One customer can be prospected by two or more sales person

� Functional � reflects customer buying cycle

� Require separate and non overlapping competencies

� Strong dependency within teams

� Adaptive � tailored to customer organization and internal process

� Highly effective

� Require more internal coordination

� Low efficiency



10%

13%

16%

23%

38%

Structuredby product

Structuredby function

Structuredby territory

Structuredby marketsegment

Hybridstructure

Current sales force structure (%)

I N D U S T R YO V E R A L L[n = 61] Automotive

TransportationLogistics

[n = 8]

Consumer Goods

[n = 11]

Financial Services[n = 19]

Communication High-tech Mobile

[n = 8]

Service[n = 4]

Others[n = 11]

Type of Sales Force Structure

25.0 45.5 26.3 50.0 50.0 45.5

25.0 27.3 26.3 25.0 * 18.2

12.5 9.1 15.8 12.5 50.0 18.2

37.5 * 15.8 12.5 * 9.1

* 18.2 15.8 * * 9.1

Sumber: MarkPlus Insight


Study the

Products, Markets,

and Activity

Develop a

Coverage Matrix

Generate Sales

Force Structure

Alternative

Evaluate the

Different Sales

Force Structure

� Menghitung

seberapa

heterogen atau

kompleks produk,

pasar, dan aktifitas

yang dilakukan

� Identifikasi

kebutuhan untuk

spesialisasi

� Tentukan dimensi

yang menciptakan

heterogenitas

terbesar

� Kembangkan

alternatif untuk

mengelompokkan

heterogenitas

untuk struktur

penjualan

� Mengevaluasi

struktur sales force

secara kontinyu

untuk

mengakomodasi

perubahan

Develop Effective Sales Force Structure


Pertanyaan untuk dipertimbangkan:

Step 1: Study the Products, Markets, and Activity

Step 2: Develop a Coverage Matrix

Step 3: Generate Sales Force Structure Alternatives

Step 4: Evaluate the Different Sales Force Structures

Menilai kebutuhan untuk spesialisasi

PERTANYAAN PRODUK

� Dapatkah satu orang menjual seluruh

produk?

� Apakah spesialisasi bisa meningkatkan

efektifitas?

� Apakah produk yang penting jadi

terabaikan jika generalist sales force

yang menjualnya ?







PERTANYAAN PASAR

� Dapatkah pasar disegmentasikan?

� Apakah ada sinergi pelanggan dalam

segmen?

� Apakah ada heterogenitas antar segmen

� Apakah segmen tersebut memiliki potensi

pasar yang signifikan?

� Apakah spesialisasi sales kepada segmen

dapat meningkatkan efektifitas?







PERTANYAAN AKTIVITAS

� Apakah spesialisasi sales berdasarkan

aktivitas dapat meningkatkan efektifitas?

� Apakah generalist sales force

menghindari aktivitas penjualan yang

penting bila mejual kepada pelanggan

dan prospek tertentu?

� Apakah perubahan teknologi

menciptakan peluang untuk spesialisasi

berdasarkan aktifitas?



Coverage matrix adalah tabel yang menampilkan dua

dari tiga sumber heterogenitas : produk, market atau

aktivitas penjualan

Setiap sel merupakan tabel yang merepresentasikan

peluang produk/pasar untuk sales force.

Products

Markets

AAA BBB CCC DDD EEE

111

222

333

444

Coverage Matrix







Alternative 2 :Coverage Matrix

Alternative 1 :Coverage Matrix





444

333

222

111

EEEDDDCCCBBBAAAProducts

Markets

444

333

222

111


Markets


444

333

222

111


Markets

444

333

222

111


Markets


Struktur yang pada akhirnya dipilih

harus baik untuk pelanggan,

karyawan, dan perusahaan







Customers

• Will the candidate structure add value for customers?

• Will the sales force be more responsive to customer needs?

• Will the candidate structure enhance trusted relationships?

• Is it easy for the customer to interact with the sales organization?

Employees

• Will the candidate structure provide rewarding work?

• Will the candidate structure provide growth opportunities?

• Will the candidate structure minimize transition disruption?

• Will the candidate structure enhance the earnings opportunities for the top performers?

• Are all of the roles and responsibilities manageable in the candidate structure?

Firm

• Does the candidate structure provide effectiveness gains?

• Does the candidate structure provide efficiency gains?

• Is the candidate structure adaptable?

• Does the candidate structure provide for the minimum number of selling faces without

losing effectiveness?

• Will the firm be able to implement the best sales strategy with the candidate structure?



Match Your Sales Force Structure to Your Business Life Cycle

Business Life Cycle

Building on

success

Making the right

moves early

The quest for

effectiveness &

efficiency

Living to fight

another day

START

UP

� Do it yourself or

outsource?

� How big should the

sales staff be?

� The need to specialize

� Getting the right size � considering

the short term and long term

consequence of the sales force size;

carry over sales; etc

� Optimizing resources � systematic

resources and process

� The account manager’s emergence

to coordinate sales person

� Is the decline temporary?

� If temporary: eliminate waste

� If it is inevitable: protect sales

force reduction

GROWTH MATURITY DECLINE


BUSINESS LIFE CYCLE STAGE

Start-Up Growth Maturity Decline

EMPHASIS

Role of Sales Force and

Selling Partners★★★★ ★★ ★ ★★★

Size of Sales Force ★★★ ★★★★ ★★ ★★★★

Degree of Specialization ★ ★★★★ ★★★ ★★

Sales Force Resource

Allocation★★ ★ ★★★★ ★

UNDERLYING CUSTOMER STRATEGY

Create awareness and

generate quick product

uptake

Penetrate deeper into

existing segments and

develop new ones

Focus on efficiently

serving and retaining

existing customers

Emphasize efficiency,

protect critical customer

relationships, exit

unprofitable segments

Four Factors for Successful Sales Force

Match Your Sales Force Structure to Your Business Life Cycle




Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




Session 4

Sales Force Sizing

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Jumlah tenaga penjualan yang terlalu sedikit

tidak dapat melayani kebutuhan pelanggan

dengan efektif

Jumlah yang terlalu besar menjadi gangguan

bagi pelanggan

Jumlah tenaga penjualan yang tepat dapat

melayani pelanggan dengan efektif

Why is Sales Force Sizing Important?


The Law of Diminishing Marginal Productivity of Labor

The Right Size

The Efficiency

The Profitability

Output

Labor

Increasing marginal

productivity

Constant marginal

productivity

Decrease marginal

productivity

Why is Sales Force Sizing Important?


I N D U S T R YOVERALL


Sales Team Size – an approximate measurement (%)(size refers to sales persons managed by each respective respondents)


Current Sales Team Size – ideal / too small / too big? (%)(size refers to sales persons managed by each respective respondents)



1. “Same as Last Year” Method

2. Financial Methods

3. Competitive Parity Method

4. Market-Based Methods

5. Territory-Based Methods

BEBERAPA METODE YANG UMUM

DIGUNAKAN DALAM SALES FORCE SIZING:

Sizing Method


1 SAME AS LAST YEAR METHOD

• Menggunakan jumlah sales force saat ini untuk menentukan jumlah sales force

tahun depan tanpa mengubah apapun

• Mengurangi biaya

• Menjaga hubungan dengan existing customer

• Kurang tepat jika perilaku pasar telah berubah

• Langkah:

� Mengevaluasi kinerja penjualan saat ini

� Menggunakan jumlah sales force saat ini untuk menentukan jumlah sales

force tahun depan

• Jumlah sales force = Jumlah sales force tahun sebelumnya

Sizing Method


• Menentukan investasi dalam sales force dengan mengurangi seluruh biaya

produksi dari pendapatan penjualan

• Memastikan profitabilitas pada tingkatan tertentu

• Investasi dalam sales force mendorong penjualan perusahaan

• Tidak dapat diaplikasikan untuk produk baru

• Langkah:

� Mengurangkan biaya produk dari pendapatan penjualan

� Menghitung rasio sales force cost

� Membandingkan biaya dengan ukuran sales force di lapangan

• Jumlah sales force = Anggaran tersedia / biaya sales force

2 FINANCIAL METHOD

Sizing Method


3 COMPETITIVE PARITY METHOD

• Mengembangkan strategi sales force dengan menggunakan informasi terkait

dengan perubahan yang terjadi pada kompetitor

• Menghasilkan penjualan dan profit yang lebih tinggi jika cocok dengan strategi

perusahaan

• Tidak dapat diaplikasikan jika perusahaan adalah market leader

• Langkah:

� Menentukan strategi dengan menganalisa perubahan yang terjadi pada

kompetitor

� Mengembangkan strategi sales force yang disesuaikan dengan keadaan

kompetitor

• Jumlah sales force > Jumlah sales force kompetitor

Sizing Method


4 MARKET BASED METHOD

• Menentukan ukuran sales force dengan menghitung waktu yang dibutuhkan

untuk melakukan aktivitas penjualan

• Dapat digunakan untuk mengarahkan upaya penjualan yang dilakukan sales

force

• Mempertimbangkan potensi pasar dan segmen

• Langkah:

� Memahami kebutuhan dan proses pembelian pelanggan

� Melakukan segmentasi pelanggan

� Mengidentifikasi strategi untuk melayani segmen

� Menentukan ukuran sales force

• Jumlah sales force = Jumlah pelanggan / waktu yang dibutuhkan untuk melayani

setiap pelanggan

Sizing Method


5 TERRITORY BASED METHOD

• Menentukan jumlah sales force berdasarkan potensi dan beban

kerja teritori

• Langkah:

� Menentukan teritori yang akan digarap

� Menganalisis profil teritori

� Menentukan ukuran sales force

Sizing Method


1. Total Populasi

2. Saluran Distribusi

3. Target Pasar Populasi

4. Potensi Pasar

MENENTUKAN TERITORI YANG AKAN DIGARAP

Territory Based Method


1. Budaya

2. Kehidupan Sosial

3. Struktur Channel

4. Tingkat Kepadatan

5. Pertumbuhan Teritori

MENGANALISIS PROFIL TERITORI



1. Breakdown Method

2. Workload Method

MENENTUKAN UKURAN SALES FORCE



TERITORI POTENSI PASAR ESTIMASI PENJUALAN PER SALESPERSON JUMLAH

ARp. 50.000.000/

Bulan

Rp. 5.000.000/

Bulan10 salespersons

BRp. 100.000.000/

Bulan

Rp. 5.000.000/

Bulan20 salespersons

CRp. 25.000.000/

Bulan

Rp. 5.000.000/

Bulan5 salespersons

Breakdown Method



Teritori Pelanggan Sales Call per Tahun Call DurationTotal Call per

Tahun

A 20 52 1 1040

B 50 26 1/2 650

C 80 12 1/3 320

2010

Workload Method

Call Duration : Waktu yang dihabiskan setiap sekali kunjungan (jam)

Teritori A : Pelanggan besar atau sangat atraktif

Teritori B : Pelanggan sedang atau cukup atraktif

Teritori C : Pelanggan kecil atau kurang atraktif

TOTAL JAM KERJA PER TAHUN

Step 1: Tentukan total jam kerja pada setiap teritori



Beban kerja

Salesperson per

minggu

Minggu Aktif per

tahun

Waktu tersedia

per Salesperson

Persentase Aktivitas

Penjualan

Alokasi Waktu

untuk Penjualan

40 jam/minggu 48 minggu/tahun 1,920 jam/tahun 40% 768 jam/tahun

Step 2: Tentukan alokasi waktu untuk aktifitas penjualan per salesperson

Workload Method



Step 3: Tentukan jumlah sales force

Salesperson Needed =TOTAL WORKLOAD PER YEAR

TIME ALLOCATE FOR SALES

Salesperson Needed =

= 2.6 = 3 salesperson

2010

768

Workload Method



Video : (Sizing)



Bagaimana dengan sales force size Anda saat ini?

Bandingkan sales force size Anda dengan grup lain !

Sekarang tentukan jumlah

salespeople Anda menggunakan

Workload Method !

Discussion


APA YANG DIKATAKAN PELANGGAN TENTANG SALES FORCE ANDA?

TERLALU SEDIKIT JUMLAHNYA TEPAT TERLALU BESAR

• Salesperson tidak ada untuk

memenuhi kebutuhan pelanggan

• Pelanggan tidak bisa menghubungi

salesperson saat mereka

membutuhkannya

• Pelanggan mempertimbangkan

beralih ke pemasok lain yang

memberikan pelayanan lebih baik

• Salesperson ada saat pelanggan

membutuhkan mereka

• Pelanggan mengharapkan untuk

bertemu dengan salesperson

• Salesperson memiliki peran penting

dengan menggunakan media

informasi lain, seperti website

perusahaan

• Salesperson dianggap mengganggu

oleh pelanggan

• Pelanggan menghindari bertemu

dengan salesperson dan tidak

menjawab panggilan teleponnya

• Pelanggan lebih memilih mencari

informasi melalui literatur

perusahaan, website perusahaan,

atau tele-sales

1 CUSTOMER TEST

Test The Size


2 SALES FORCE MORALE TEST

• Moral sales force berhubungan dengan ukuran sales force

• Saat jumlah sales force terlalu banyak atau terlalu sedikit, moral

mereka akan jatuh

• Saat jumlah sales force terlalu banyak, mereka akan mengeluhkan

kompensasi

• Saat jumlah sales force terlalu sedikit, mereka akan mengeluhkan

tentang beban kerja

Test The Size


3 FINANCIAL TEST

• Mengestimasi biaya tahunan per salesperson

• Mengestimasi marjin kontribusi kotor

• Menghitung break-even penjualan = Biaya per salesperson /

Kontribusi marjin kotor

• Menghitung rata rata penjualan tahunan per salesperson

• Membandingkan break-even sales dengan rata-rata sales per

salesperson

Test The Size


TERLALU KECIL TERLALU BESAR

PenjualanKecil, menurun atau tidak berkembang

secepat yang diharapkanTinggi, bertumbuh

Pangsa pasar Kecil, kehilangan pelanggan Besar, tumbuh dari kompetisi

Penjualan per

salespersonBesar Kecil

Biaya penjualanTerkontrol, kecil bila dibandingkan dengan

industri

Tidak terkontrol, tinggi bila

dibandingkan dengan industri

ProfitAkan lebih baik dengan sales force yang lebih

besar

Akan lebih baik dengan sales

force yang lebih kecil

New business

developmentKecil Sedang

3 FINANCIAL TEST

Test The Size




Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




Session 5

Sales Compensation

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Why is incentive important?

Discussion


IMMEDIATE IMPACT

� Tipe orang yang tertarik pada

perusahaan

� Aktivitas dan perilaku sales

force

� Meningkatkan penjualan

� Mempengaruhi profitabilitas

perusahaan

� Mengevaluasi performa

secara objektif

� Membandingkan performa

dengan orang lain

� Menghabiskan sebagian

besar waktu tanpa supervisi

� Kerja keras hanya untuk

ditolak pada akhirnya

85% sales force di

AS menggunakan

incentive plan

Mengapa penjualanmenggunakanIncentive Plan?

Sales force mendorong liniatas

Output individu dapat diukurdan dibandingkan

Pekerjaan penjualanterhindar dari interaksi sosialyang suportif dan melibatkanpenolakan yang banyak

Why is Compensation Important?


KOMPENSASI

BIAYA

MOTIVASI

EFISIENSI

KEEFEKTIFAN

Why is Compensation Important?


Incentive Compensation Plan yang tidak Efektif…

� Menarik dan mempertahankan orang yang biasa

� Lebih atau kurang bayar

� Membayar untuk orang yang salah

� Mendorong aktivitas sales force yang konsisten

dengan strategi perusahaan

� Mengalokasikan usaha sales force kepada pasar

yang salah

� Mendorong sales people untuk menghubungi

teman dan keluarga

� Mendorong kelebihan penjualan

� Membuat perusahaan tidak mencapai target


Incentive Compensation Plan yang Efektif…

� Menarik dan mempertahankan orang terbaik

� Membayar sesuai harga pasar

� Membayar untuk performa

� Mendorong aktivitas sales force yang konsisten

dengan strategi perusahaan

� Mengalokasikan usaha sales force kepada produk yang

tepat

� Mengalokasikan usaha sales force kepada pasar yang

tepat

� Mendorong keseimbangan antara pengembangan

usaha baru dan pengelolaan hubungan dengan

pelanggan

� Membantu perusahaan mencapai ekspektasi


The Impact of Compensation on Sales Force


TYPES OF

COMPENSATION

GAJI

INSENTIF

BONUSKONTES PENJUALAN

Types of Compensation


Company Salesperson Customer

Set

Compensation

Plan

• Sales

• Profits

• Retention of

Key

salespeople

Choose

Activities

Make

Purchases

• Reward

• Recognition

• Sales

• Job Satisfaction

• Product

Satisfaction

• Satisfied with

Sales People

Compensation Planning Framework


PERUSAHAAN MEMUTUSKAN RENCANA KOMPENSASI SALES FORCE

COMPENSATION PLAN MEMPENGARUHI TIPE ORANG YANG TERTARIK KEPADA PERUSAHAAN

Rencana kompensasi sales force

harus konsisten dengan strategi

perusahaan

Company’s Decision


Setiap salesperson memutuskan seberapa keras ia

akan bekerja dan berapa waktu yang dihabiskan

RENCANA KOMPENSASI AKAN MEMPENGARUHI BAGAIMANA SALESPERSON MEMUTUSKAN

PENGGUNAAN WAKTU

Hal ini juga akan mengkomunikasikan aktivitas

mana yang paling penting bagi perusahaan

Sales Force’s Decision


PELANGGAN MEMUTUSKAN APAKAH AKAN

MEMBELI PRODUK ATAU LAYANAN

PERUSAHAAN

KEBUTUHAN PELANGGAN MEMPENGARUHI KEPUTUSAN PEMBELIAN MEREKA.

Customer’s Decision


KEPUTUSAN KETERANGAN

Level Seberapa besar salespeople harus dibayar?

MixSeberapa besar gaji “fix” dan insentif salespeople yang harus

dibayar?

MeasuresBagaimana proporsi dari kompensasi salespeople yang harus

dibayarkan insentif?

Performance-Payout

Relationship

Bagaimana pembayaran insentif berbeda dengan performa yang

diukur?

Effective Compensation Plan


LEVEL

Tingkat pemasukan sales force dapat dijelaskan dengan kombinasi faktor-faktor berikut ini :

Faktor Eksternal : permintaan dan penawaran dalam pasar tenaga kerja

Faktor Internal : profitabilitas industri dan perusahaan

Faktor yang berhubungan dengan pekerjaan



Proses penjualan mudah dipelajari dan dilakukanProses penjualan memerlukan tingkat kompentensi

yang tinggi untuk dipelajari dan dilakukan

Sales force tidak terlalu menonjol dalam penjualan Sales force menonjol dalam penjualan

Penjualan berdasarkan usahaPenjualan berdasarkan kemampuan dan

pengetahuan

Salesperson adalah seorang “farmer” Salesperson adalah seorang “hunter”

Salesperson menambahkan nilai tertentu kepada

pelanggan

Salesperson menambahkan nilai yang cukup besar

kepada pelanggan

Salesperson bertanggung jawab pada pelanggan di

area lokal

Salesperson bertanggung jawab pada pelanggan

nasional dan pelanggan besar lainnya

Kebanyakan pembelian sederhana, minor Kebanyakan pembelian rumit, mayor

Perusahaan memiliki posisi monopoli Perusahaan berjualan dalam pasar kompetitif

Low Income High Income

Dimensi yang menentukan pemasukan salespersonLEVEL



Salary

Incentive

100%

Salary

100%

Incentive

. .. ... . .

Primary

metals

Food

Agriculture

Amusement

Petroleum

Pharmaceuticals

Health

Hotels

Rubber

Plastics

Banking

Electronics

Utilities

Machinery

Office equipment

Communications

Insurance

Lumber

Real estate

Furniture

The Salary/Incentive Mix by Industry

MIX



Dilema Umum dan Dampak terhadap Insentif atau Gaji

Hasil jangka pendek dihargai Hasil jangka panjang dihargai

Sales force fokus pada hasil Sales force fokus pada aktivitas

Salesperson adalah seorang “hunter” Salesperson adalah seorang “farmer”

Salespeople diberdayakan Kontrol kuat pada perusahaan

Orientasi individu diharapkan Orientasi tim diharapkan

Talenta terbaik diambil kedalam sales

force

Talenta terbaik dikembangkan dalam

perusahaan

Sales force berusaha menjadi adaptif Diharapkan stabilitas

Favor Incentives Favor Salary

MIX



COMMISSION

PROS

� Baik ketika berada dalam lingkungan

penjualan individu

� Baik ketika sulit untuk mengontrol

usaha penjualan di lapangan

� Memberi feedback secara

berkesinambungan sehingga sangat

motivasional

CONS

� Akan sangat tidak adil ketika teritori

penjualan memiliki potensi yang

tidak seimbang

� Tidak akan cocok untuk produk

dengan proses penjualan yang rumit

BONUS

PROS

� Sesuai ketika teritori penjualan

(segmen pasar) tidak sama

� Baik ketika ada siklus penjualan yang

panjang

� Sangat baik ketika lini produk

memiliki penjualan yang berlebihan

CONS

� Cocok ketika kontrol biaya tidak

penting

� Salespeople tidak akan mengalami

penurunan moral ketika tidak

berhasil mendapatkan bonus

MIXED

PROS

� Mendorong orang untuk

memperoleh kemenangan besar dan

pada saat yang sama memberikan

feedback yang berkesinambungan

CONS

� Mixed compensation plan sulit untuk

dijelaskan dan dihitung

Salary plus commission

Payout

Sales

Multiple bonuses paid upon hitting several gates

Payout

Sales

Payout

Sales

TIPE INSENTIF MANA YANG SESUAI?MIX



Pengukuran Apa yang Sebaiknya Digunakan?

Sales, contribution, margin, market share ,

collections, satisfaction, activities,

capabilities

Level, growth,

target/goal, ranking

relative to peers

Product, market

segment, company level

Monthly, quarterly,

annually

Performance Criteria Dimensions

Metrics

Data Views

Timing

Focus

Measures of Performance



LINEAR PAYOUT

PAYOUT

SALES

� Membayar pada harga yang sama untuk

setiap tingkat pencapaian

� Dapat dimulai pada saat pertama atau

ketika tujuan telah tercapai

� Dapat dibayarkan dengan atau tidak

dengan gaji

� Gaji ditambah 3% komisi pada penjualan

kotor

Performance Payout Relationship



PAYOUT

SALES

� Membayar pada harga yang berbeda

pada tingkatan penjualan

� Bayaran meningkat seiring dengan

peningkatan penjualan

� Gaji ditambah 2% komisi terhadap kuota

dan 5% apabila melebihi kuota

PROGRESSIVE PAYOUT




PAYOUT

SALES

� Membayar dengan harga yang lebih

rendah ketika penjualan meningkat

� Gaji ditambah 3% komisi pada penjualan

sampai dengan 1 juta dan 1% atas

semua penjualan diatas 1 juta

REGRESSIVE PAYOUT




PAYOUT

SALES

� Kombinasi atas harga yang lebih tinggi

dan rendah ketika penjualan meningkat

� Gaji ditambah 2% komisi atas semua

penjualan sampai dengan 1 juta, 3%

untuk penjualan antara 1 – 1,2 juta, dan

1% untuk semua penjualan diatas 1,2

juta (target teritori adalah 1,1 juta)

million)

MIXED PAYOUT




• Hanya menghargai hasil secara keseluruhan. Tidak menghargai tindakan

spesifik yang penting terhadap kesuksesan perusahaan seperti kepuasan

pelanggan, pengembangan pelanggan strategis, dan peluncuran produk baru.

• Tidak memberikan penghargaan superior terhadap hasil superior

• Tidak menyesuaikan kompensasi dengan standar industri setiap tahunnya.

• Tidak merefleksikan kontribusi dari faktor-faktor non-sales (seperti brand

strength, kualitas produk, dll)

• Tidak merefleksikan kontribusi salesperson sebelumnya

Common Mistakes in Compensating


POSITIVE RETURN OF COMPENSATION

Source: Return on Investment of Compensation Expenditures by Fred Whittlesey

Internally Externally

� Should be mutually

advantageous financially

(Revenue > compensation)

� Should not produce incremental

costs

(Incremental cost < compensation)

� Produce a level of return on

investment expected by

investors

� Directly aligned with the return

to investors

(Increase in compensation will not

decrease investor return)

Return on Investment of Compensation Expenditures



Hypotheses DataFinancial Model of

Pay and ReturnAssumption Expected Value

� Mengembangkan

hipotesis dalam

rangka

kebutuhan bisnis

� Menentukan tipe

asumsi dan

memperkirakan

kebutuhan

sebagai input

dalam model

� Mengumpulkan

data untuk

mengembangkan

model dan

asumsi finansial

� Nomor input

(asumsi)

terhadap model

finansial

� Mengembangkan

rencana berbasis

skenario �

kemungkinan

terburuk, terbaik,

menengah)

� Menentukan

probabilitas

terhadap masing-

masing skenario

untuk

menentukan nilai

yang diharapkan

� Hubungan antara

setiap nilai dan

biaya

A PRACTICAL MODEL FOR COMPENSATION ROI




Increase in Total Compensation

Base salary

increases

Higher annual

incentive target % Larger stock option

grants

Lower healthcare

co-pays

� Higher fixed expenses

� Reduced profit

� Reduced cash flow

� Higher variable

expenses

� Reduced profit

� Reduced cash flow

� Higher non-cash

expense

� Higher dilution

� Reduced EPS

� Higher fixed expenses

� Higher costs from

increased use of

service

Negative

Financial Impact

CFO’s VIEW OF THE COMPENSATION ISSUE




Increase in Total Compensation

Higher job

satisfaction

Reduced turnover Higher offer

acceptance rate

Lower absenteeism

Higher productivity Lower turnover cost Lower recruiting cost Reduced overtime

costs

Positive ROI for

Increased Total

Compensation

VP OF HR’s VIEW OF THE COMPENSATION ISSUE





Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




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Training The Sales Force

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“Because the industries we are competing for – the industries of the future – are all based on

brainpower, the dominant competitive weapon of the twenty first century will be the education and skills

of the workforce.”

-Lester Thurow, professor, MIT Sloan School of Management


Perubahan dalam lingkungan penjualan adalah faktor

kedua yang mengancam kompetensi salespeople dan dapat

menciptakan kesenjangan

Peran sales force training adalah menyediakan kesempatan

bagi para salespeople dengan kesempatan untuk menutupi

kekurangan yang mereka miliki.

Sales training ada untuk membuat salespeople sukses

secara berkelanjutan

Why is Sales Training Important?


CUSTOMER IMPACT

• Kebutuhan pelanggan terhadap produk dan layanan dimengerti dan dipenuhi

• Pelanggan merasa bahwa salesperson mereka menambah nilai dan dapat dipercaya

• Pelanggan merasa bahwa salesperson tidak menghabiskan waktu mereka

• Pelanggan suka bekerja dengan salespeople perusahaan

SALES FORCE IMPACT

• Salespeople baru menjadi produktif secara cepat

• Salespeople memasuki setiap situasi penjualan dengan keyakinan bahwa mereka dapat berhasil

• Salespeople menyadari trend kebutuhan teknologi, lingkungan, pasar, konsumen, industri, dan

produk.

COMPANY IMPACT

• Retensi moral salesperson dan sales force tinggi

• Produk dan layanan dibedakan; kompetisi harga diminimalisir

• Budaya perusahaan dimengerti dan didukung, oleh sales force

Sales Training Impact on Sales Force


Knowledge

• Product

• Customer

• Technology-database,

information management,

and tools

• Company policy, values,

and culture

Skills

• Prospecting

• Needs identification

• Time and territory

management

• Listening

• Persuasion

• Presentation

• Negotiation

• Closing

• Account maintenance

and expansion

Ability/Capability

• Customer and industry

research

• Customer and account

profitability maximization

• Development of best selling

process

• Quantitative analysis

• Problem solving

Sales Force Competencies


RESPON PROGRAM PELATIHAN YANG EFEKTIF SEBAGAI RESPON TERHADAP

LINGKUNGAN DINAMIS

New

Selling Environment

New Ideal

Selling Process

New Salesperson

Requirements

Capability

Gap

Enhanced Training

Need

Source: The Complete Guide to Accelerating Sales Force Performance, Andris A.Zoltners, Prabhakant Sinha, Greggor A. Zoltners, p. 202

Change

Sales Representative Training


LIKE SOCCER TRAINING, SALES TRAINING needs to be continuous and at every level!!


Video : (Product)



PEOPLE GENERALLY REMEMBER:

10% of what they READ

20% of what they HEAR

30% of what they HEAR

50% of what they HEAR AND SEE

70% of what they SAY

90% of what they SAY as they DO a thing

Ideas to Enhance Training Program


Step 1:

Step 2:

Step 3:

Step 4:

Training Outcome Assessment

Training Program Evaluation

Training Program Renewal

Training Program Measurement and Evaluation

Sales Training Process


STEP 1

Program evaluasi kegiatan paralel:

1. Memindai lingkungan penjualan untuk perubahan yang

signifikan

2. Merevitalisasi proses penjualan untuk memasukkan

perbaikan yang akan meningkatkan daya saing sales

force.

3. Menentukan persyaratan salesperson yang diperlukan

untuk mendukung proses penjualan baru.

4. Tentukan hasil pelatihan yang akan memastikan bahwa

sales force akan mampu melaksanakan proses

penjualan baru.



TRAINING OUTPUTS

Communications

Advertiser needs

Selling against the competition

Competitive products

New products

Negotiation

Existing products

Billing error resolution

Industry trends

Production process capabilities

Insertion order completion

Credit guidelines

Computer applications

AN ILLUSTRATION OF TRAINING OUTCOMES.STEP 1



STEP 2

THE CAPABILITIES/EFFECTIVENESS (C/E) MATRIX ADALAH:

“Alat yang berharga untuk menentukan sejauh mana program pelatihan saat ini

mencapai hasil yang ditentukan pada langkah 1 (Pelatihan Hasil Assessment)”.



Ilustrasi C/E Matrix untuk Sales Force Periklanan Surat Kabar

STEP 2



Program pelatihan perlu di-update untuk menunjukkan kesempatan perkembangan yang

diidentifikasi dalam langkah 2 (Evaluasi Program Pelatihan)

Training ContentTraining Content Training MethodsTraining MethodsTraining

Participants

Training

Participants

Stages of Training Program Renewal

STEP 3



KNOWLEDGE

• Product

• Market

• Customers

• Technical

• Economy

• Competitors

SKILLS

• Selling

• Targeting

• Time/territory

• Presentation

• Writing

• Negotiations

• Relationship development

OTHERS

• Internal customer management

• Customer service interface

• Team Building

• Pricing

• Goal Setting

CULTURE

• Corporate philosophy

• Values

• Work style expectations

• Heroes, legends, stories

Training Content



CLASSROOMPARTICIPANT AND

OBSERVATION TRAININGSELF-STUDY

ON-THE-JOB

TRAINING

EXTERNAL

SEMINARS

•Lectures

•Role-playing

•Case studies

•Plant tours

•Listening to customer

service phone calls

•Observing company buyer

•Mentoring

• Optional courses

• Books, articles

• CD-ROM

• Videoconferencing

• Videotapes

• Internet/intranet

• On-line

• Coaching

• Instructional

guidelines

• Customer

feedback

•Time management

•Negotiations

•Selling skills

Training Method



Self-Study External Seminars Classroom

Participant and

Observation

Training

On-the-Job

Training

Efficiency Effectiveness

Training Method



VICE PRESIDENT OF SALES

HEADQUARTERS SALES TRAINERS

SALES MANAGERS

FIELD SALES TRAINERS

EXPERIENCED SALESPEOPLE

MENTORS

SELF-STUDY ADMINISTRATORS

Training Participants



KNOWLEDGE

Classroom

Self-Study

Headquarters Sales Trainers

Sales Managers

Self-Study Administrators

SKILLS

Classroom

On-the-Job

External Seminars

Participants & Observation

Headquarters Sales Trainers

Sales Managers

Field Sales Trainers

Experienced Salespeople

Mentors

CULTURE

Classroom

On-the-Job

Vice President of Sales

Sales Managers

Experienced Salespeople

Mentors

TRAINING

CONTENTS

PRIMARY

METHODS

MAIN TRAINING

PARTICIPANTS

STEP 3



STEP 4

Pelatihan sulit untuk diukur.

Sulit untuk mengetahui secara pasti sejauh mana peningkatan produktivitas dari sales force.



WAYS TO MEASURE WHAT TO MEASURE HOW TO MEASURE WHEN TO MEASURE

Cognitive effects –

“What do learners know?”

Knowledge of course content Exams

Self-assessment

Interview

At the completion of training and

at points in the future

Attitudinal effect -

“How do learners feel?”

Perceptions of training

Course evaluation

Instructor evaluation

Organization climate

Survey

Interview

At the completion of training

Behavioral Effect –

“What do learners do?”

Skills

Job performance

Absenteeism

Turnover

Performance indicators

Observation

Managerial assessment

Self-assessment

Over the first year

Results –

“How do learner changes affect

the organization?”

Job Satisfaction

Customer Satisfaction

Sales

Profits

ROI

Survey

Experiments

Managerial judgment

After a year

STEP 4



WHAT IS


Coaching is interpretation of facts :

After The Training: Coaching

Telling, Directing, Instructing,

Guiding, Leading, Doing,

Listening, Providing Examples,

Participating, Demanding,

Maintaining Order, Prescribing,

Teaching, Training


HAVE YOU EVER COACHED

YOUR SALESPEOPLE?


Source: “Managing Major Sales”, Neil Rackham & Richard Ruff p.130

Tanpa coaching,

87% pengetahuan

yang diperoleh

salesperson

melalui training

akan hilang dalam

waktu 1 bulan



COACHING IS IMPORTANT TO:

Support and promote skills taught during training

program. Without coaching, 87% of skills and

knowledge taught in the classroom disappear

Pass on tacit knowledge and market wisdom

otherwise lost over the years

Improve job satisfaction and reduce salespeople

turnover

Create a culture of continuous improvement



RESEARCH RESULT

Source: Selling with Competence: How Sales Teams Succeed by American Society for Training & Development (ASTD)

ACCENTURE

NIGHTINGALE CONANT

146 of 244 executives from six countries � sales team plays the most prominent role

in their company’s long-and short-term success

BUT

41% of managers and executives � salespeople are performing below expectations

Selling with Competence: How Sales Teams Succeed


PART OF THE REASON MAYBE BECAUSE

WE DO NOT DO ENOUGH TRAINING

Sales

Manager

61%

Other

39%

Have Time

To Develop

& Coach

Sales Team

61%

Do Not

Have Time

To Develop

& Coach

Sales Team

39%

Use

Coaching

33%

Do Not Use

or

Sporadicall

y Use

Coaching

67%

Who trains in your organization?


RESEARCH RESULT



Skills required to be successful:

• Asking effective or productive questions of customers

• Becoming a better listener

• Selling with the customer’s best interest in mind

• Making ethical decisions

• Leveraging sales approaches that are adaptable from one situation to the next

Valuable knowledge areas :

• Customer requirements and potential uses of the product or service

• Product knowledge

• Company knowledge (of the selling company)

• Knowledge about competitor companies

Source: Selling with Competence: How Sales Teams Succed by American Society for Training & Development (ASTD)

RESEARCH RESULT

ASTD (American Society for Training & Development) surveyed to 210 sales trainers and 179

salespeople.



• IDENTIFY : determine desired outcome(s) required to achieve the overall sales strategy

• EXAMINE : determine gaps in achieving the desired outcomes

• ENABLE : develop specific recommendations and solutions for success

• EXECUTE : create a comprehensive plan and get buy-in from stakeholders

• EVALUATE : collect feedback and measure against the expected outcomes

4EXECUTE

5EVALUATE

1IDENTIFY

3ENABLE

2EXAMINE


THE MODEL OF

FIVE PHASES



DIAGNOSTIC QUESTION THOUGHTS, IDEAS, ACTIONS

How well do you feel your company’s sales process, compensation plan, and

marketing messages align to the buyer’s unique purchasing processes

What challenges are the sales team member’s facing on a regular basis? How are

key organizational linkages addressing these challenges?

What is the number 1 complaint of your customers and your sales team

members?

How does your sales training content help attain your organization’s key

strategies, goals, and objectives?

How are your senior leaders measured? What is the relationship between their

goals and the sales team goals?

How well does your sales culture support training solutions that you believe to

be important and relevant?

THE TABLE BELOW HELPS YOU BRING YOUR ORGANIZATION INTO ALIGNMENT WITH THOSE EFFORTS

DIAGNOSTIC QUESTION




Obstacles in improving sales-force effectiveness (%)



Training Program Effectiveness (%)





Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




Session 7

Performance Management

Eka J. Budhiman



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II



III



IV



PERFORMANCE

MANAGEMENT

Company

Productivity

Effectiveness

Efficiency

MENYELARASKAN

ORGANISASI PENJUALAN

DENGAN TUJUAN

PERUSAHAAN:

- Menetapkan goals

- Mengembangkan rencana

- Memonitor progress

- Menganalisa masalah

- Menghasilkan feedback

Role of Performance Management


Performance

Management

Peningkatan kinerja

Tindakan yang tepat

Penyesuaian kompensasi

Kenaikan gaji, bonus

Keputusan penempatan

Promosi, transfers, demosi,

pemutusan hubungan kerja

Kesempatan yang sama

Menghilangkan diskriminasi

Job design errors

Ketidakakuratan informasi

Uses of Performance Management


PERFORMANCE MANAGEMENT adalah pemahaman tentang rantai nilai bagaimana

mengendalikan dan mengubah keterampilan serta kemampuan salesperson menjadi


PERFORMANCE MANAGEMENT merupakan usaha untuk merubah sistem agar mampu

mempertahankan dan menjaga performance

1

2

Key Issues in Performance Management

TERDAPAT DUA ISU DI DALAM MANAGING PERFORMANCE:


Goals

Plans

Actions Measurement

EvaluationFeedback and

Consequences

Performance Management Process


Goals

Sistem Performance Management menetapkan GOAL yang mensyaratkan kemampuan dan

kegiatan yang bukan hanya untuk perusahaan dan pelanggan semata



Plans

Plans menjabarkan strategi penjualan, strategi promosi, dan strategi pengembangan

salesperson untuk mencapai GOAL

Plans menjelaskan

bagaimana GOAL akan

dicapai.



Actions

Tindakan yang dilakukan untuk mencapai

SALES GOAL termasuk semua kegiatan

penjualan seperti: prospecting, qualifying,

need analysis, closing the sales, dll.



Measurement

Tujuan measurement adalah untuk membantu

evaluasi performance.

Customer result, kegiatan sales force, dan keterampilan sales force adalah contoh ukuran

yang dapat dipakai untuk menghubungkan sales performance driver dengan kinerja



Evaluation

Evaluation framework membantu manajer menilai kinerja dengan memperhatikan faktor-

faktor yang mempengaruhi hasil dan metode yang dapat digunakan untuk memperbaiki

masalah kinerja, memperkuat kinerja yang baik, dan mentransfer praktik terbaik dari satu

ke lainnya



Interaksi yang

ada di dalam

sistem

manajemen

penilaian

kinerja selama

setahun

Feedback and Consequences


Knowledge

Skills

Competencies

Characteristics

Values

Activities

Behaviors

Customer

Results

Company

Results

Impact

Long-Term Medium-Term Short-Term

PERFORMANCE IMPACT OF THE SALES PRODUCTIVITY STAGES



MEASURING COMPANY RESULT

Sales Productivity

Lead Management

Evaluation

Sales Growth

PRODUCTIVITY

EFFECTIVENESS

EFFICIENCY

Profit Contribution

Total Selling Cost

Profit Contribution

Available Selling Time


Total Selling Costs

SELLING MARGINProfit Contribution

Sales

SELLING RATESales


UTILIZATION Available Selling Time

Total Sales Time

SUPPORT LEVERAGETotal Sales Time

Support Time

SUPPORT INTENSITY Support Time

Total Selling Costs

1

2

3

Success rate

Lead Time

3444 50 58 56

2004 2005 2006 2007 2008

SuspectClose Payment



Sales force evaluation period (%)

I N D U S T R YAutomotive

Transportation

Logistics

[n = 8]

Consumer

Goods

[n = 11]

Financial

Services

[n = 19]

Communication

High Tech

Mobile

[n = 8]

Service

[n = 4]

Others

[n = 11]

- 18.2% 5.3% - - 9.1%

12.5% 18.2% 10.5% 25.0% 50.0% 27.3%

- 9.1% - - - 9.1%

37.5% 45.5% 21.1% 62.5% - 9.1%

37.5% 9.1% 26.3% - 25.0% 27.3%

12.5% - 5.3% - 25.0% 9.1%

- - 31.6% 12.5% - 9.1%



5%

5%

8%

10%

13%

15%

84%

Sales person loyality

Sales call effectiveness

Product knowledge

Attitude

Quality of the sales management

Customer satisfaction

Sales target achievement

Parameters used by companies to evaluate their sales force

effectiveness level





Tel. +62 21 5790 2338 ▪ Fax. +62 21 5790 2268




Session 8

Motivating The Sales Force

Eka J. Budhiman



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II



III



IV



Does It Seems Familiar?

“Salespeople memerlukan MOTIVASI yang TINGGI

dalam pekerjaannya. Bagaimana cara Saya agar mereka

memiliki performance kerja harian yang baik?”

“Bagaimana cara Saya untuk memotivasi tim penjualan

dan mempertahankannya tetap semangat setiap hari?”

“Bagaimana cara Saya untuk memotivasi salespeople

agar mau terus berusaha? Membuat mereka bekerja

lebih keras dan memiliki semangat yang sama dengan

yang Saya miliki?”


Membantu salespeople untuk menjadi lebih produktif

Membuat salespeople menjadi semakin loyal

Memungkinkan dilakukannya pengawasan minimum

terhadap tim penjualan namun tetap memiliki

produktifitas yang maksimum

Why is Motivating Important?


Berdasarkan riset:

15% Coaching yang kurang terarah

20% Kemampuan komunikasi yang kurang

15% Permasalahan manajemen

50% SIKAP

Jeffrey Gitomer, Sales Bible,2003, p. 29

MENGAPA SALESMAN GAGAL?



Kebanyakan

Salesman GAGAL ...

… karena mereka BERPIKIR,

bahwa mereka AKAN GAGAL !!!


Video : (Demotivated Employee)



Job Performance =

(Ability) X (Motivation)



WHAT IS


“An intention to do something”(Alasan untuk melakukan sesuatu)

“Motivation is the internal condition

that activates behavior and gives it

direction”(Motivasi adalah kondisi internal yang

menggerakkan dan mengarahkan

perilaku)

“An activated state

within a person that

leads to goal directed

behavior”(Suatu keadaan di dalam

diri seseorang yang

mengarahkan perilaku

pada pencapaian goal)

What is Motivation?



Self Actualization

Esteem

Physiological

Safety

Social

Kebutuhan makan, minum, pakaian, tempat

tinggal

Kebutuhan merasa aman (lingkungan,

pekerjaan)

Kebutuhan untuk bersosialisasi dengan

lingkungan sekitar

Kebutuhan untuk mendapatkan pengakuan

dan penghargaan

Kebutuhan untuk mengaktualisasi diri seiring

berjalannya waktu

“Seseorang akan merasa terdorong untuk mencapai tingkatan kebutuhan

yang lebih rendah sebelum mencapai tingkatan kebutuhan yang lebih tinggi”

Maslow’s Theory


GOALS

CAPABILITY

MOTIVATION

SATISFACTION

EFFORT

REWARDS

PERFORMANCE

ExpectancyInstrumentality

Valence

Does effort cause

performance? Does performance create

rewards?

Do the rewards

motivate the

salesperson?

Expectancy Theory


Can’t Do Do

Will Do

Won’t Do

Kemauan

Ke

ma

mp

ua

n Tries HardHighly

Successful

Serious Hiring Error

Disappointment

Capability – Willingness Matrix


EVERY SALESPERSON IS MOTIVATED BY DIFFERENT FACTOR

BEBERAPA FAKTOR YANG DAPAT MEMOTIVASI:

• Achievement: I’m succeeding!

• Social affiliation: I have many friends!

• Power: I run things!

• Ego gratification: I’m the best!

• Survival: I don’t want to fail!

Motivation Factor


THE SALES JOB PROGRAM STRATEGIES MANAGER STRATEGIES

Success is usually measurable sales,

order, profit, market share

Measure sales and other performance metrics

when they are available. Look for good

surrogates and approximations when it is

difficult to measure sales and/or profit. What

gets measured gets recognized.

Communicate successes formally

and informally to others.

Communicate appreciation to the

salesperson when he or she is

successful.

Success can have significant

variance: high and low points

Use occasional small contests. Reward for

longer time periods to overcome variance.

“We’re making our year-to-date plan”

Reward for group success: district

or region. “We are all winners”

Success is not always dependent on

the salesperson. The product,

customer service, team selling, or

territory alignment can all affect

sales force effectiveness

Fix product, customer service, alignment, and

compensation problems.

Monitor conditions for unfairness

and lobby top management for

change. Let the salesperson know

that management is aware of the

problem and what steps will be

taken to correct it.

Some salespeople may have

plateaued or are underperforming

Make varied career path available for

salespeople. Sometimes the new job can be

inside the company, in a different sales force or

in a more technical role.

Assess whether underperformers

are selling the wrong product for

the wrong company; work with

them to revitalize their career path.

Appealing Achievement Factor



Salespeople often work alone.

Foster connection to the company with sales

meetings: district, regional and national.

Reduce paperwork so salespeople can spend

more time with customers. Publish newsletters

that promote connection to others.

Act as an ally. Converse with each

salesperson on a regular basis.

Rejection occurs frequently on the

job.

Provide training to make salespeople more

successful

Coach salespeople that rejection is

part of the job.. “It is part of doing

business. It is not about you.”

The job is customer-centered. Hire empathetic people who like people.

Teach partnership with the

customer. “If we are win-win, we all

fit in.”

There can be destructive

competition with peers

Promote healthy competition :

- No poaching

- Equitable territories

- Fair compensation

- Appropriate rewards and recognition

Use best practice sharing in a

success culture.. “We are the best.”

Appealing Social Affiliation Factor



The job is empowered. Salespeople

usually control their time and

activity.

Provide training so that salespeople utilize time

effectively and succeed in their customer

interactions. Provide customer data to enhance

targeting and customer effectiveness.

Avoid micromanagement.

Salespeople may feel helpless in

tough situations if they are under

equipped in the areas of selling

skills, product knowledge, or time

and territory management.

Diagnose the areas of inadequacy. Provide

training to help people feel more in control.

Hire the right people for the job.

Be available to assist new hires.

Provide feedback and field training

to salespeople who feel under

equipped.

It is tempting for salespeople to call

on easy customers : “friends and

family.”

Give stricter guidelines for targeting customers.

Demonstrate how wasted calls affect income

negatively. Provide incentives for new customer

development.

Train and coach the salesperson

into a larger comfort zone.

Appealing Power Factor



Power often rest with the customer,

who makes the purchase decision.

Develop good products, good service, and good

value. Create a win-win partnership of equals.

Participate with the salesperson in

difficult situations.

The salesperson is not in control of

all interactions with the customer.

Problems could occur in customer

service, delivery, or billing.

Keep all areas of the company focused on

servicing the customer.

Provide salespeople with an avenue to vent

frustrations, as well as a way to provide

information to other parts of the company

about products and customer needs.

Keep all areas of the company

focused on servicing the customer.

Appealing Power Factor



Competitive people who like to win

are attracted to the sales job. It is a

job that gives significant ego

gratification.

Compensate well. Pay for performance.

Provide special treatment :

- special training

- sales assistants

Give promotions and special titles :

- senior salesperson

- national accounts

Communicate success :

- newsletters

- president’s club

- “we work for money, we strive for plaques”

Give special assignments :

- mentor for new salespeople

- Recruiter

- regional trainer

Provide sales perks :

- pink cadillac

- golf shirts

- sales meetings at luxury resorts. Appropriate

rewards and recognition

Interact one- on-one with the top

performers and let them know they

are doing well.

Occasionally ask top performers to

substitute for the manager.

Ask leading sellers to manage and

or present best practices at district

and regional sales meetings

Appealing Ego Factor



Salespeople face frequent rejection.Set goals realistically so at least 70% of the

people achieve the goal.

Show interest in employees, coach,

support, listen and counsel.

Selling success runs in hot and cold

streaks.Use year-to-date quotas.

Provide coaching through the rough

Spots.

Appeal to a higher cause :

− we are the best sales force, or

− we have the best product, or

− we work for the best company.

Appealing Ego Factor



Salespeople can be poor at the job. Hire and train properly

Create fear in underperformers.

People on the edge should know

where they stand

Results are usually very

Measurable. There is no hiding from

poor performance.

Develop an accurate and equitable

performance evaluation system.

Coach the poor performers so that

the achievement motivator

replaces the survival motivator

Compensation can have a high

variable component

Ensure that salespeople will earn at least

Subsistence pay.

The survival motivator might urge salespeople

to quit if pay is too low

Teach persistence. Sales and

Personal income follow from

sustained effort

Selling is a high-risk jobPay a salary if the market is too unpredictable

or if a significant level of sales is not

determined by the salesperson’s competence

and effort

Understand that fear will keep the

survivors afloat during the tough

Turnover can be high. It is often

hard to keep good people in good

Job markets.

Tight job markets eliminate other

opportunities

Provide good compensation plans and good

recognition programs to keep motivation high

and to retain the good people.

Be aware that good managers

retain their good people.

Appealing Survival Factor


� Sales Territory Design and Sales Support

� Recruiting and Promotions

� Training

� Compensations

� Recognition Programs and Contents

� Coaching and Supervision

� Communication

� Culture

� Other Company Factors

PROGRAM APA SAJA YANG MEMOTIVASI SALESPEOPLE?

Productivity Drivers


• Provide something for everyone (berikan sesuatu untuk semua orang)

• Avoid conflicts in programs (jauhi

konflik di dalam program)

• Distinguish between can’t do and

won’t do (bedakan antara yang tidak

mampu dengan tidak mau)

• Avoid unfairness (hindari ketidakadilan)

• Know that too much “rah-rah” is blah

Motivating Principles


Punishment

Learn-and-Grow Challenge

Reward Recognition

Praise

Motivating Technique


� Terlalu banyak bergantung kepada

kompensasi sebagai faktor utama di dalam

memotivasi

� Meremehkan pengaruh leadership dan

budaya

� Tidak menganggap tujuan karir salesperson

� Kurang memanfaatkan alat-alat manajemen

seperti pertemuan mingguan, pertemuan

tahunan, pertemuan semester dan kuarter

� Ketidakjelasan harapan salesperson

mengenai tugas dan hasil

Common Mistakes in Motivating People


Video : (Motivation)



Thank You

[email protected]

Documents

Sales Force Management