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Sales
Productivity
In our experience, the factors that most often prevent sales people
from being more productive are
- Failure
to properly manage sales situations,
- Ineffective
use of company internal sales resources,
- Too
much time spent on unqualified prospects, and
- Reactive,
rather than proactive selling.
 1.
Sales organizations lose more sales to NDI (No Decision Inc.) than to any
other competitor because their sales people fail to properly manage sales
situations.
Our experience reveals that of all the opportunities considered by potential
buyers, roughly 70% are won by the competitor we call NDI, No Decision, Inc.
NDI wins a majority of the time because:
- The
prospect does not understand the magnitude of their business problem (and
therefore the true cost of the problem), especially if the effects of the
problem cross organizational lines;
- The
prospect does not understand how the proposed product or service will help
them solve their business problem, or the prospect does not believe that
their problem is solvable.
- The
prospect is not convinced of the value of the proposed product or service
to their business.
- The
prospect fears that the potential costs of an unsuccessful transition outweigh
the possible benefits offered by the proposed products or services.
- The
sales person fails to deal with a company officer with authority to make
or influence the buying decision.
- Can
your sales people deliver a compelling business case for the use of
your products/services by prospects in your target industries?
- Do
prospects have reason to believe that your sales people can command the
resources within
your company necessary to deliver the promised results?
- Do
your sales people waste valuable time calling
on the wrong people in prospect companies?
- Does
your sales force feel comfortable talking
about the kinds of issues executive-level officers are concerned with?
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Would it help if your sales people:
- had
a process to follow to help the client assess the extent and cost of
the business problem your product can solve?
- knew
how to prepare a factual business case for the use of your product in
the prospect's company, including cost benefits?
- could
provide convincing evidence that your company had the expertise necessary
to execute a successful transition?
- knew
techniques to identify whether they were dealing with a decision-maker?
- were
trained in how to gain access to decision-makers and in how to discuss
issues and negotiate at this level?
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2. Sales people do not know how
to use internal staff "experts" to close sales.
We
find that sales people often have excellent people and selling skills, but
lack the industry and/or client knowledge to understand a prospect's business
problems. This is especially true when the individual sells complex or highly
sophisticated services to complex or highly technical industries.
Although "experts" with the necessary product, industry, and client
knowledge work within the sales organization, most sales people do not know
when and/or how to assemble these individuals into a "sales team"
that can assess, design and discuss cost-justified business solutions to prospect
problems.
- Do
your sales people have difficulty explaining how your products
and services can be used to solve business problems?
- Does
your company sometimes waste company resources
delivering dog-and-pony shows to prospects that do not become buyers?
- Do
your company's dog-and-pony shows address generic rather than prospect-specific
business problems?
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- Would
it help if your sales people had
sales tools designed to help them discuss the specific business problems
that your products and services are best able to solve?
- What
if they had guidelines for when and how each person in your organization
should be used in the sales process, based on each person's particular knowledge
and skills?
- Would
it help if subject matter experts were trained
in how to effectively help the sales person prepare and present a prospect-specific
business case justification for the use of your product or service?
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3. Sales people often spend too much time on unqualified prospects.
We all know that not every sales situation is a winner, even when a prospect
appears to be a "hot one". For example,
- Your
products and services may not be a cost-effective solution to the prospect's
business problem;
- The
prospect may be using your company to justify a decision to buy a competitor's
product;
- The
prospect may not be able to get the cash to buy your product.
We
believe that "if you must lose, it is best to lose early" to minimize
both the amount of scarce company resources spent on unqualified deals, and
the opportunity of good sales lost while sales people pursue poor prospects.
- Do
your sales people and your sales managers know how to identify poor prospects
early, so that they can avoid wasting valuable time where there is little
real chance of winning?
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- Would
it help if your sales team had a set of objective criteria
to qualify a prospect's potential at each stage of the sales cycle?
- What
if your sales people had been trained in how to turn a poor opportunity
into perhaps a good one?
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4.
Sales people are not proactive.
We believe that too many sales people wait for opportunities to come to them,
rather than creating sales opportunities by identifying prospects that could
benefit from their product/service capabilities.
- Do
your sales people avoid
spending time on prospecting?
- Have
they been successful generating sales with their current approach to
prospecting?
- Do
they regularly look for cross-sell or new opportunities with existing
clients?
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- Would
your sales people be more interested in prospecting if they had specific
tools that would make their efforts more rewarding?
- Would
a regular account planning process help identify opportunities within
existing clients?
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McCrory
& Company would like to introduce you to the sales
process tools that have helped other companies make their sales teams more
productive.
CONTACT US
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