2016 Management of Sales Forces

Management of Sales Forces

Matthieu BRUCKERT2016

Introduction

Matthieu BRUCKERT@iBruckert

The SECRET:

The SECRET:

Find the right PEOPLEWrite the right PROCESSUse the right TOOL--------------> OVERPERFORM!

Agenda

1. Fundamentals2. Process3. People4. Tools5. Overperform!

1.Fundamentals

Sales

« The sales is the exchange of a commodity or service in return for money»

the law

Sales

sales = €

Force

F=mA

“Acceleration is produced when a Force acts on a mass.”

Isaac Newton

The greater the mass, the greater the Force needed!

Sales Force

“...the most important function for 65% of the business owners”(Novancia 2011)

Sales Force

The direct link to the customer...

Sales Force?sales guy

sales manager

vendor

technical sales

sales engineer

customer advisor

telesales

...

The role of the Sales Force

What are customers expecting from the Sales Force today?

#1 Customer expectation

Be personnaly accountable


Understand meUnderstand my businessUnderstand my problems


Be on my sideBe my real partnerBe my representant within your company


« Sur mesure »I am not a number


Be accessibleStay connectedAnswer my callsBe on timeRemember the promise you made


Solve my problemsFind the right solution


Be creativeI need innovative solutionsMake the difference

The role of the Manager

Definition: Management“In businesses and organizations, the Manager coordinates the efforts of people to accomplish the objectives.”

manage = pilot = conduct = guide = supervise = take care of = lead = ...

The Role of the Manager

“You are not managing sales; you are managing the people who make the

sales”

The importance of the Manager

• Increase revenue and profitability

• Decrease variability of revenue• Increase sales productivity• Increase Customer Loyalty• Increase Sales People

motivation

The Diagnostic

Manager = Pilot1.People2.Tools3.Process

Checklist & Flight PlanCheck List➔ Where are

we?➔ Is the plane

ok?➔ Do we have

gas?➔ etc...

Flight Plan➔ Destination?➔ How?➔ Flight

duration?➔ etc...

The DiagnosticCheck List= Diagnostic

Flight Plan= Sales Action Plan

The DiagnosticMarketing MixBCG MatrixSWOTPesteletc...

4P+3P

SWOT

2. Process

B2C/B2B

B2C = Business to ConsumerB2B = Business to Business

B2C

Business to Consumer“commerce transactions with final consumers”

B2B

Business to Business“commerce transactions between businesses”

B2B vs B2C

B2B vs B2C• Most salespeople are involved

in retail selling (B2C)• Larger volume of sales

accounted in industrial selling (B2B)

Manager = Pilot1.People2.Tools3.Process

Checklist & Flight PlanCheck List➔ Where are

we?➔ Is the plane

ok?➔ Do we have

gas?➔ etc...

Flight Plan➔ Destination?➔ How?➔ Flight

duration?➔ Cost➔ etc...

The Sales Action PlanCheck List= Diagnostic

Flight Plan= Sales Action Plan

The Sales Action PlanPart 1

1.1 The Vision1.2 Strategic Objectives1.3 Sales Objectives

Part 2

2.1 Targets2.2 Sales Process2.3 Sales Organization (Team, Territories, Agenda, Budget)

1.1 The VisionTranslate the global strategy into words

“Being in the TOP 3 of this market within 3 years”“Having all SBF100 as customers in 5 years”

1.2 Strategic ObjectivesSplit vision into objectives“Year 1: develop a distribution networkYear 2: promote…”“Find 10 reference customer within 6 month”Long term relationship VS one shot selling

1.3 Sales Objectives

Put numbersQuantified objectives« You cannot improve what you cannot measure! »

2.1 Targets• Consumers / Companies• Contacts

2.2 The Sales Process• Scale sales force by teaching how to

succeed• Measure and manage • Design selling process according to

how customer buys• Team sales require clearly defined roles

for each member

FOCUS:The Sales Process

Lead/Prospect/Customer

who bought

potential prospect

potential customer

LEAD =PROSPECT

=

CUSTOMER =

Quiz

Sales = ?❏ negotiation❏ discussion❏ €, £, $, etc...❏ information❏ exchange

A Typical Sales Process1. Prospecting2. Opening

relationship3. Need qualification4. Proposal5. Negotiation6. Closing7. (Follow-up)

1. Prospecting• Core competency• Sales fundamental• Critical to increasing sales• Hard work• Delayed payoff• Requires design and

discipline• Enhanced by software

2. Opening the Relationship• “The approach”• Who is likely to have the greatest

influence to initiate the purchase process?

• Generate interest to obtain information needed to qualify a prospect

• Identify key decision makers, desires, and relative influence

3. Qualifying the Need• Does prospect have a need for

product?• Possible to make prospect aware of

need?• Will the sale be profitable to the

company?

4. Proposal• Present your solution• Transmit information• Persuade prospect to

become a customer• Pricing

5. Sales negotiation« Discussion between two parties looking for an agreement »(Win/Win)

6. Closing the sale• Begins with first contact• Requires “Asking for the order”• Trial Close• Understanding the prospect and

buying process

7. (Follow-up)• Excellent service to boost loyalty• Follow up to check satisfaction• Installation• Training• Billing• Satisfied customers = Repeat customers

2.3 Sales Organization• Team• Territories• Agenda• Budget

FOCUS:Sales Organization

Purposes of Sales Organization

• Divide and arrange activities so the firm can benefit from specialization of labor

• Provide for stability and continuity in firm’s selling efforts

• Increase productivity – specialists can become proficient at assigned tasks

• Divide required selling activities to gain maximum benefits within the sales force

Sales Organization Structure• Horizontal – divides selling

activities among sales force

• Vertical – assigns authority for specific sales management activities

Horizontal Structure• Company sales force or outside agents?• Number and arrangement of sales force?• Product, customer, or functional

assignments?• Responsibility for national accounts?• Foreign market sales and marketing?

Outsourcing the Sales Force• Distributor, agent, representative...• Cover specific territory and specialize in limited

range of complementary products• Do not take title or possession of the goods they

sell• Compensated by commissions• Broad authority to modify prices and terms of

sale• Actively shape manufacturer’s promotional and

sales programs

Comparison: Selling Costs vs Sales Volume

• Simplest and most common method• Individual salespeople assigned to separate

geographic territories• Lowest costs (Travel time and expenses)• Sales administration and overhead costs kept

low• Does not provide benefits associated with

specialization of labor

By Territories

By Territories

By Products• Salespeople master effective selling

methods for single or related products• Closer alignment of sales and production • Sales management controls allocation of

selling effort across the line

But… duplication of effort!

By Products

By Market• Better understanding of customer needs• Increased familiarity with certain businesses• Increased control over allocation of selling effort

But… duplication of effort!

By market

Telemarketing/Sales Assistance• Form of organization by selling function• Qualifying potential new accounts• Servicing existing accounts quickly• Seeking repeat purchases from existing

accounts that cannot be covered efficiently in person

• Providing quick communication of newsworthy developments

3. People

The role of the sales leader

“You are not managing sales; you are leading

the people who make the sales”

Are Sales People born or made?

becomeimprove

15 qualities

5 x 3 = 15

1.1 Attitude

55%non verbal

1.2 Manners (good)

SBAM =S’il vous plaît (Please)Bonjour (Hi)Au revoir (Bye)Merci (Thanks)

1.3 Charisma

Inspire trustBe listened to

2.1 Active listening

2 ears---------------1 mouth

2.2 Curiosity

Capacity to ask questionsInterest for what is different, new

2.3 Adaptation

Adapt or die...

3.1 Sales technique

Selling techniqueTheory + Experience

3.2 Rigour

OrganisationReporting

3.3 Honesty

TrustEngagement

4.1 Communication

TalkingExplaining

4.2 Persuasion

Consistency of speechAbility to convince

4.3 Relationship

NetworkInternalyExternaly

5.1 Tenacity

PerseveranceToughnessCourage

5.2 Optimism

Resistance to stress

5.3 Creativity

ImaginationIdeas“out of the box”

Quiz : qualities of good sales people?

Attitude Manners Nice tie

Passive listening Curiosity Adaptation

Product technique Stubbornness Honesty

Communication Kindness Relationship

Patter Optimism Creativity

Quiz : evaluate yourself!

15 qualities of good sales people

Attitude Manners Charisma

Active listening Curiosity Adaptation

Sales technique Rigour Honesty

Communication Persuasion Relationship

Tenacity Optimism Creativity

Are sales leaders born or made?

becomeimprove

Qualities of Sales Leaders

15Qualities of Sales People

+ LeadershipBe an exampleShow the way

+ CoachingTrainDevelop Talents

+ AnalystMeasureControl

+ MotivateCongratulateThank

+ AnimateMeetCommunicateTalk

Leadership theorySituational Leadership:4 styles of leadershipby Paul Hersey

Situation 1: TellingTelling - is characterized by one-way communication in which the leader defines the roles of the individual or group and provides the what, how, why, when and where to do the task

Situation 2: SellingSelling - while the leader is still providing the direction, he or she is now using two-way communication and providing the socio-emotional support that will allow the individual or group being influenced to buy into the process

Situation 3: ParticipatingParticipating - this is how shared decision-making about aspects of how the task is accomplished and the leader is providing less task behaviours while maintaining high relationship behavior

Situation 4: DelegatingDelegating - the leader is still involved in decisions; however, the process and responsibility has been passed to the individual or group. The leader stays involved to monitor progress.

The ideal situation?• Telling• Selling• Participating• Delegating

Assertive leadership?• Managing emotion• Active listening• Delegation skills• Gratitude• Self-control• Justice -> facts

Sales negotiation

« Discussion between two parties looking for an agreement »(Win/Win)

4. Tools

Quiz

Prospecting means?

❏ looking for potential customers

❏ qualifying leads❏ closing business❏ taking a shovel

Portfolio?contact basecustomer base email listdatabasephone list...

Digital tools

Customer Relationship Management

Outlook, Excel,...

Sales Force Automation

FILE =SFA =

CRM =

Data quality

last nametelephoneemail

first namemobilefunctionage...

Teleprospection/Phoning

SCRIPT3/30/3

3/30/3 technique

3 seconds of introduction

3 minutes to convince

30 seconds to catch the attention

3 =30 =

3 =

Mailing

TargetedUltra-personalizedCall2Action

eMailing

Mailing+ 3 deliverability

factors (provider, object, content)

+ mobile

Deliverability factors

...Deliver

...Click

...Open

Content =Object =

Provider=

SMS, App, Push

Immediate engagementInteractivity

Website

78%consumers are Web2Store(Responsive)

Show, event, conference, day...

ImageNotoriety

Social networks

B2C : Facebook, TwitterB2B : Linkedin

Multichannel, 360, omnichannel...

The era of CRM

CRM

Customer Centric

Customer is the center of all activities

Marketing Evolution• Market Share -> one2one Marketing• Transactions -> Relationships• Huge Campaigns -> Real-Time

Marketing

Source: Ronald S. Swift, Accelerating Customer Relationships: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001), p. 38.

Objectives of CRM1. Customer Acquisition2. Customer Retention3. Customer Profitability

Relationship Development

Stage 1

Exploration(Acquisition

)Buildtrust

Generate sales

Build loyalty

Stage 2

Expansion

(Retention)

Stage 3

Commitment

(Profitability)

Definitions• Up-Selling?• Cross-Selling?

Building Customer Relationships

• Under promise, over deliver• Don't forget the small things• Stay in contact• Establish a feedback system

Loyal Customers• Are easier to

convince• Provide positive

customer referrals• May pay premium

prices for value they receive

Measure loyalty• Annual retention

rate (-/- Churn)• Frequency of

purchases• Percentage of the

customer’s total purchases captured

Advantages of CRM

?

Advantages of CRM 1/2•Increases awareness of needs•Tracks effectiveness of

campaigns•Competition based on

service, not prices

Advantages of CRM 2/2•Prevents over-spending on

low-value customers•Prevents under-spending on

high-value customers•Speeds time to market a

product

Critical Questions in CRM 1/31.Who are our customers?2.What do our customers want

and expect?3.What is the value potential of

our customers?

1.What kind of relationship do we want to build?

2.How do we foster exchange?3.How do we work together and

share control?

Critical Questions in CRM 2/3

1. How do we organize to move value closer to our customers?

2. How do we measure and manage our performance?

3. How do we increase our capacity for change?

Critical Questions in CRM 3/3

CRM is only a TOOL

Tools enable rather than transform

eMPower the Sales Force

SFA

CRM? SFA?

CRM includes SFA

CRM Success

?

CRM Success

User adoption %

CRM Failures 1/2

• Disruption of routines• Perception of CRM as

micro-management tool (big brother)

CRM Failures 2/2

• Differences in expectations• Perceived lack of

management support• Disconnection (IT)

The enemy ;)

20th century CRM Software

Technology Evolution• Data warehouse• Big Data & BI (Business

Intelligence)• Internet• SaaS• Mobile• Cross-organization

21th century CRM Software

An example

http://www.salesforce.com

http://www.salesforce.com/

http://www.salesforce.com/

On Demand (SaaS)• Fast• Easy• Open• Flexible• Trusted

All in one place

Leads• Marketing primary material• Needs to be qualified to

become (Account + Contact)

Accounts• Prospect• Customer• Partner• Competitor

Contacts• Humans in the Accounts

Activites• Events• Tasks• Calls• Meetings• Emails

Products

• Configure Solution• Price• Quote

Reports & Dashboards• Forgotten

Contacts• Late tasks• Accounts by

region• Big Deals

Forecast & Quotas

Opportunity= Potential

Order

Information for ManagersSales forecastsTerritory estimatesQuotasSales force sizeSales territory design

Market Opportunity AnalysisMarket potential – estimate of possible sales for an entire industry in a market during a stated period under ideal conditionsSales potential – portion of market potential the firm can expect to reasonably achieveSales forecast – estimate of dollar or unit sales for a specified future periodSales quotas – sales goals assigned to a marketing unit to manage sales efforts

Sales Forecasting Methods

Subjective Sales ForecastingUser expectations – relies on buyers’ expressed intentionSales force composite – sales force opinionsJury of executive opinion - key experts’ opinionsDelphi technique – participants prepare estimates which are compared anonymously and iteratively to reach consensus

Objective Sales ForecastingMarket test – places product in selected areasTime series analysis – relies on historical data to develop predictionsStatistical demand analysis – attempts to determine the relationship between sales and factors that influence sales

Effects of Territory Estimates

Design of sales territoriesProcedures for identifying potential customersEstablishment of sales quotasCompensation and subcomponentsEvaluation of salesperson performance

Get results

Integrate Services• Customize • Connect• Open

5. Overperform!

Road to Success

What is success?

?

What is success?

a Goalyou reach

The Goal TheorySMART

By Edwin Locke in 1968

The Goal Theory1.Set Specific goals2.Goals are Measurable3.But Attainable4.Relevant5.Time-Bound

The Goal Theory

1.Inform2.Measure3.Improve

InformSales Action PlanProcessTools…Quotas!

Sales QuotasGoals assigned to salespeopleApply to specific periodsTool for planning and controlling field selling activities and resultsBenchmark for evaluating sales effectiveness Motivate sales people

Quota PurposesProvide incentives for sales representativesProvide measures to evaluate salespeople's’ performance

Process for Setting QuotasIdentify types of quotas to be usedSelect level of each type of quota

Good Quota Characteristics AttainableEasy to understandCompleteTimely

Quota TypesSales volume – emphasize sales or some aspect of salesActivity – focus on certain sales activitiesFinancial – examine financial criteria such as gross margin or contribution to overhead

Sales Volume QuotasMost popularOften based on past salesRelated directly to market potential, thus credible and easily understoodMay be expressed in euros, physical units, or points

Activity QuotasReflect territorial conditionsRequire a detailed analysis of work required for effective territorial coverageCustomers influence activity quotas through:Account and order sizePurchasing patterns Support required for satisfaction

Common Types of Activity Quotas

• Calls on new accounts.• Letters to potential

customers.• Proposals submitted.• Field demonstrations

arranged.• Service calls made

• Equipment installations supervised.

• Displays arranged.• Dealer sales meetings

held.• Meetings and

conventions attended.• Past-due accounts

collected.

Financial QuotasDirect salespeople to more profitable products and customersCommon bases

Gross marginNet profitSelling expenses

Calculation not straightforwardProfit produced affected by factors beyond a salesperson’s control

Quota Level ConsiderationsTerritory available potential Quota’s impact on motivationLong-term company objectivesShort-term profitability impact

MeasureUse objective measures:Number of OrdersNumber of CallsNumber of Qualified ProspectsNumber of MeetingsNumber of Proposals…

Improve

The dialog is the key!

Quota -> Compensation

The types of Compensations ?

SalarySalary

CommissionsCommissions

BonusesBonuses

ContestsSales Contests

BenefitsBenefits

What will make you reach this goal?

?

What will make you reach this goal?

Sales PeopleMotivation

Definition : Motivation

?

Definition : Motivation« Willingness to do something »

(Why do we do what we do?)

an individual’s choice

Sales People prefer…

?


€?


1. change, innovation, movement, no routine

Sales People love...

2. meeting people, having conversations, creating relations

Sales People are happy...

3. helping, finding solutions

Sales People are proud…

4. of the expertise they have in their job

Sales People will always try...5. to avoid or minimize confrontation

Sales People enjoy…

6. Sharing their expertise

What will motivate your Sales People?

ImprovementTraining

Gratefulness

Sales Training“What will happen if we

train them and they leave?”

Sales Training“What will happen if we don’t and they

stay?”

People Skills

Improve skills

Sales Tools

Increase productivity

Sales Process

Improve customer relations

The SECRET:

The SECRET:

Find the right PEOPLEWrite the right PROCESSUse the right TOOL--------------> OVERPERFORM!

The REAL SECRET:

It is ALL about PEOPLE

--------------> OVERPERFORM!

Book Recommendation

Sales Force Management: Leadership, Innovation, Technology 11th editionBy Mark W. Johnston, Greg W. Marshall

Thanks

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