Embed Size (px)
Citation preview
Improving Sales Performance
Robert Jones
Ashcroft International Business SChoolAnglia Ruskin University
CambridgeUK
Outline
6 Cs of Customer ServiceSales orientationCriteria for measuring sales performanceCommon errors in measuring sales performanceImproving sales performance5Es of good sales techniqueWhy customers do not come backDealing with customer complaints
The 6 Cs of good customer service:-
Customer focus see things from your customer’s point of view
Care spend time and effort to give better service
Courtesy politeness makes a nice impression and doesn’t cost anything
Consideration of your customer’s needs, wants and expectations
Communication attentive listening and careful questioning and clear explanations
Common sense do the sensible thing in order to please your customer
Quick sale or consultative selling?
If your firm believes that a good salesperson should be able to close the deal, then the job is that of short-term persuasion at any price.
Conversely, if the seller is viewed as the representative of the client within the company, salespeople should have a long-term outlook, listen to the client and even be willing to lose an order once in a while.
Customer’s friend
Order taken
Soft sell
Problem solver
Hard sell
Co
ncern
for th
e cu
stom
er
Selling orientations
Concern for achieving sale
Which orientation is appropriate for your next selling project?Usunier J-C., (2000) Marketing Across Cultures, Pearson Education Ltd, chapter 15
Sales portfolio
Understand each customer’s business issues.
Identify the real influencers in the decision process.
Identify customer buying procedures early in the process.
Accurately assess the timing for closing the sale.
Minimise discounts and protect margins at closing.
Which of these do you use for measuring your sales person’s performance? What is missing?
1. Volume of sales, in Euros2. Time spent in office3. Personal appearance4. Number of calls made on existing accounts5. Number of new accounts opened6. Sales orders complete and accurate 7. Reports submitted on time8. Euros spent on entertaining customers9. Promoting the company10. Accurate pricing & deliveries to customers11. Knowledge of the business12. Planning and routing of calls
Five common errors in measuring sales performance
1 . Based on sales volume
2. Based on number of calls made
3. Based on comparing sales with last year’s sales
4. Following old established selling methods
5. Too much freedom for sales people
1. Sales volume
will not tell you how much profit contribution the sales personis making.
Unless you know this, your sales person can actually be losing money, for example by discounting the price too aggressively in order to win the sale.
Consider dropping less-profitable and non-profitable accounts,unless they are a prospect for future, more profitable business.
2. Making calls
on customers and prospects is important – but your sales person should make calls on accounts in relation to their profit potential.
Pareto’s 80/20 rule
Generally, 80% of sales are generated from 20% of customers.Conventional wisdom says that 80% of salespeople’s time
should be focused on 20% of the biggest customers/prospects.
More importantly, 80% of profits come from 20% of sales,therefore 80% of the salespeople’s time should be focused on the most profitable 20% of accounts.
Work smarter, not harder.
3. Comparing sales with last year’s sales
can be misleading.
Changes in products, prices, competition and assignments make comparisonsdifficult.
It is better to measure cumulative progress towards goals.
Why criticise a sales person for spending too much time in the officeif that brings in profitable orders by telephone, mail or e-mail?
4. Following old established selling methods
senior sales managers expect their team to use the same methodsthat worked for them in the past.
But market conditions change and the most effective methods change.
5. Too much freedom for sales people
Sales people are sometimes given too much freedom.Senior sales managers should keep in touch witheffective selling methods and measures, so that profitability is maximised.
Quantifiable measures of sales performance
1. Volume of sales in Euros2. Time spent in office3. Personal appearance4. Number of calls made on existing accounts5. Number of new accounts opened6. Sales orders complete and accurate 7. Reports submitted on time8. Euros spent on entertaining customers9. Promoting the company10.Accurate pricing & deliveries to customers11. Knowledge of the business12. Planning and routing of calls13. Profit contribution of each account – don’t forget this
The 5 Most Dangerous Issues Facing Sales Directors Today,
and How to Guarantee a Permanent Improvement in Sales Results
Written & Produced by:Nikki Owen Managing Director, Trainique Ltd
Andy Miller Vice President, Think Training Inc.
www.businessballs.com/salesdevelopmentresearch.htm
Based on research on 2700 organizations by The Sales Activator® Nightingale Conant
The Five Most Dangerous Issues (ibid)
1. A poorly defined sales process dilutes sales revenues.
2. Lack of essential skills leads to below average performance and consequently below average sales results.
3. Failing to focus Salespeople’s activity reduces efficiency and consequently reduces sales results
4 Allowing self-limiting beliefs to constrain Salespeople’s performance which limits sales results.
5. Failing to choose and develop a Sales Leadership Team that nurtures and develops their Salespeople’s potential, which decreases sales results
SolutionsDevelop a comprehensive, step-by-step consultative sales process.
Involve top performers and customers and align CRM, sales management processes and compensation structures for maximum impact.
Use training, mentoring and coaching in bite sized chunks to share best practice and develop consultative sales skill.
Develop and embed an objective, realistic method of evaluating and rating customers and prospects based on strategic value.
Train sales managers to identify limiting beliefs in salespeople and create the opportunities for colleagues to reinforce empowering beliefs in each other.
Recruit and develop effective people-centric sales managers.
Critically, build their coaching skill and provide innovative and easy-to-use resources for developing the team during regular sales meetings http://www.saleswork.co.uk/sales_techniques/five_issues_facing_sales_leaders.htm
Improving a Sales Person’s performance
1 . Planning
2. Measuring
3. Correcting
1. Planning
Agree goals for:-
1. Total profit contribution, in Euros2. Profit contribution for:-
Each major product lineEach major market (by sector or geographical area)Each of 10-20 target accounts
3. Controlling expensesTotal expenses in EurosBudget for:- travel
customer entertainmenttelephone, etc.
2. Measuring
Review monthly your sales person’s record for:-
1. Year-to-date progress toward 12-month profit contribution goals.
2. Year-to-date variances – positive and negative – and reasons
3. Correcting
Review with your sales person reasons for his / her results being10% or more off target. To help improve his / her performance:-
Give more day-to-day help and direction Accompany on calls to provide coaching Increase sales promotion activities Transfer accounts to more a productive sales person Tighten control over price variance allowed Increase or reduce selling prices Add new products or services Increase financial incentives Replace the failing sales person
the 9 Selling Knowledge Areas,produced by
the United Professional Selling Association (UPSA)
http://www.upsa-intl.org/ TRAINIQUE Ltd & THINKTRAINING Inc 2004
TRAINIQUE Ltd & THINKTRAINING Inc 2004
CustomersCustomers are our bossesOur customers pay the billsThe customer is always right
Our customers pay our salariesCustomers are people not numbers
Customers are our best source of customersCustomers do not depend on us, we depend on them
In America, the customer is KING; in Japan the customer is GOD.Customers do not interrupt our work, they are the reason we are here
What customers value most are our attention, dependability, promptness and competence.
5 Es of good sales technique
Efficient - control costs, don’t waste time and effort for your employere.g. real commitment to finish the job
Effective - do the right job, first time, every time for your customer
Efficacious - are you having the desired effect? for your customer
Ethical - do the right thing, behave decently to others for all partiese.g. open and honest communication
Elegant - service with style for your customer and yourselfe.g friendly co-operation, personal charm
Balance the needs of your customer and your company:-
Understand your company’s policies and procedures
Know how these rules and regulations might affect your customer
Be able to explain these to your customer
Keep in mind your authority to make decisions
Be careful before “bending” rules and regs – this can cause problems.
Seek help from your supervisor, who may be able to agree to a change in company rules and regs in order to satisfy your customer.
Customers need to know the reason why their need cannot be satisfied. The more information you can give, the better.
Why customers do not come back
1% die3% move away4% are natural floaters5% move on recommendation9% find somewhere cheaper10% are chronic complainers14% are dissatisfied68% go elsewhere because the sales people who serve them just
don’t care
Complaints Procedure (1)
“Good morning, how may I help you?”
Always be courteous with customers Behave in a way that shows you understand your customer’s feelings
Offer reassurance / assistance / sympathy - whatever is appropriate.
You should have a system in place for dealing with complaints – this is a basic part of Customer Service.
Your complaints procedure should cover all types of complaint – face to face, via letter, phone call or e-mail.
All employees must understand how to deal with complaints.
.
Complaints Procedure (2)
You should have a maximum length of time that it takes to respond to a letter
of complaint – within 7 days
A standard complaints form is a good idea.
All information you gather must be factual – not based on emotion.
Show a genuine effort to resolve the matter and record details of all complaints along with relevant materials (eg receipts or damaged goods).
Investigate the complaint in detail; what is the cause, can it be remedied?
Complaints Procedure (3)
Be sympathetic but do not admit liability while the investigation is under way.
Always try to offer the customer a solution, whether it is a repair, replacement, refund or money-off deal.
When the complaint has been dealt with, follow it up with a phone call or letter of apology to ensure the customer is satisfied.
“Whoever received the initial complaint should be at the end of the process as well. This closes the circle and shows the complainant that they were taken seriously.” Mike Petrook (CMI).
Dissatisfied customers
4% of dissatisfied customers typically complain.96% will just quietly go away91% never come back.
But
70% will come back again if you resolve the complaint in their favour.
You will probably spend 6 times more to attract new customers than you will to keep old ones.
(Robert Craven 2002 “Customer is King – how to exceed their expectations”, Virgin Books)
Six honest serving men
I keep six honest serving-men (They taught me all I knew);
Their names are What and Why and When, And How and Where and Who
Rudyard Kipling (author of Jungle Book) “The Elephant Child”
Questions lead to Answers
Answers lead to Relationships
Relationships lead to Sales
Sales lead to Profits
Profits lead to Growth
Improving sales performance -
remember Pareto’s 80/20 rule
Work smarter, not harder.
