Many businesses have made the mistake of promoting their best performing sales person into the role of sales manager. Their logic – well they are great at selling, they’ll be great at sales management. Sadly most of these situations end in disaster.

To start off the top performing sales person has usually been given no training or a development framework to help them make the transition into what is a very different role. It is almost assumed they will know how to be a sales manager because they ‘know’ (sadly usually only intuitively) how to sell. The new sales manager, if not aware of their own capabilities/areas for development and not properly trained often (usually unintentionally) begins to compete with their sales team for sales because they miss the thrill of the sale. When out with a sales person they often take over the sales call and do it themselves leaving the sales person feeling diminished or marginalized. Their coaching strategies are reduced to saying ‘You can do it, just be like me’. Their management of the sales team can be haphazard and lacking in structure.

The consequences of such an approach can be far reaching with their actions resulting in lower sales performance. As their frustrations levels rise and they may find themselves taking back the sales responsibilities trying to cover for low levels of sales performance. Then sales people begin to leave the company or others kick back taking the easy road whilst the sales manager does their job for them. And if not corrected quickly they send themselves and their sales team into a downward spiral of poor sales outcomes.

Why would any business do this? The intentions of management to promote the best sales performer to management are usually honourable – moving into management is seen as a promotion. The best performing sales person may have asked for the promotion as it is seen (and often promoted by business) as the next prestigious step in their career. This person has been a great asset to our business we should promote them – Right? Not necessarily. Many top performing sales people usually get their greatest thrill in being in a sales role. Whilst the lure of management looks attractive, usually with a bigger more stable pay packet and accompanying prestige, the truth is that it is often a nightmare for many – even more so when there is no training, tools or resources to do the job well.

Many an elite sales performer, like many elite athletes do not know why they are good or how to show others to be effective in sales. They are often very unaware of their own strengths and talents and which means they do not know how to transfer their skills and talents onto others. They often do not know how others need to learn as well making matters worse. Many are operating intuitively. How can you train and teach something that doesn’t exist? With no proper training in people management, coaching and development practices, and if the new sales manager has low levels of self and other awareness, then we are heading for disaster in the sales stakes.

I keep seeing the following issues reoccurring all too frequently in many sales teams:

• No defined sales model
• No logical sales plan
• No clear sales metrics and activities plan
• No logical sales process for sales people to follow or sales managers to coach to
• No logical sales coaching and performance system to use to help improve performance
• No structured targeted sales recruitment process to use
• No clear value proposition, lack of awareness of their competitive edge and no clear economic argument to position products/ services/business against the competition.
• Poor role clarity – none really knows what they need to being doing, including the sales manager.

In my opinion this comes down to not having clearly defined roles and responsibilities, not selecting correctly for the role, ineffective sales management training and poor access to tools and resources for sales managers to do their job well.

Developing and enhancing your skills, attitudes and behaviours to be an effective sales manager and leader is critical to yours and your sales team’s success. However many sales managers do not get the right level of training and development to be effective and gain mastery in their jobs. Many have attended high level leadership programs on vision and high-end strategy but found they were left wanting when it came to the practical in-field tools and practices they needed to use and apply everyday with their people.

Many of the sales managers I come across are desperate for useful tools and resources and practical training to help them do their jobs well. I find when we work with them give them what they need by way of coaching field guides, templates, coaching/recruitment/performance processes, sales meetings guidelines, etc. coupled with a good education in this space they take to it with gusto and find they can really make a difference with their teams and their sales results.

Several sales managers I have been working with recently found their anxiety levels reduced significantly once they had their ‘sales managers tool kit’ and knew how to use it wisely and well.

Sales management is an applied role and not some theoretical abstraction.

So let’s give sales managers a fair chance of gaining mastery in their roles by giving them what they need – practical tools, resources and education. And, who knows even the top performing sales people might make top performing sales managers if given half a chance.

Contact BARRETT on 03 9532 7677 for access to our ‘Sales Managers Tool Kit’ and Sales Managment Training Programs.

Terms such as Account Development, Account Management and Territory Management are often interchanged indiscriminately by many a sales people and managers thus creating confusion when it comes to sales planning, portfolio allocation and recruiting the right kind of sales person for your business.

I thought it might helpful to define these terms and give you a little more perspective.

All sales people involved in developing long term viable business relationships with the right kind of customers should be doing Account Development: Here is our definition of Account Development taken from the BARRETT Sales Competency Dictionary.

Account Development: Develops account profiles and plans for each customer with a thorough understanding of the customer’s business and their needs and works with that business to yield greater penetration rates for further viable sales.

It makes sense.  However, when it comes to field sales planning it is critical, not just to know whom you are calling on and how you are calling on them, but to know what type of portfolio allocation and management your sales portfolio requires. 

Are you and your sales team working a territory or account management strategy? 

The difference is quite important if you want to run a successful well managed sales team and business.  Let’s look at the two most common terms used when it comes to sales portfolio management:

Account Management

Relates to a Sales Representative entrusted with managing an account or series of accounts.  This, for example, would include the responsibilities for locating and negotiating to acquire clients’ accounts within a Territory, State or Nationally.  Account Management is not necessarily territory bound in practice, however, it does involve:

• positioning yourself and your business at multiple levels with the client account,
• handling all major decisions related to that specific client and
• working with all key people within that account including the key decision makers, influencers, coaches, etc. 

True Account Management is usually reserved for larger, more complex accounts requiring one or more of a team of people to manage the account(s) from the supplier.

Territory Management

Relates, in the main, to a Sales Representative or Merchandiser with a Territory to manage – this is most common in businesses such as:

• Pharmaceutical Sales: calling on GP’s, Hospitals and Pharmacies within a specific geographical area.
• Selling into Retail: selling into and managing all the different retail stores in their territory i.e. Supermarkets, etc.
• Some Mortgage Franchise Sales: in a number of these franchises, they have set Mortgage Brokers up with a designated geographical territory calling on consumers within that area.

Therefore how should your sales team currently be operating?

If you are unsure about what is right for you here is some information from www.sykronix.com, a marketing research portal that might help you:

REASONS FOR ESTABLISHING SALES TERRITORIES

Better coverage – salespeople cannot cherry pick; territory assignments constrain salespeople to work with less profitable customers or prospects as well as the most desirable accounts

Reduced selling costs – assigning responsibility to a single salesperson ensures that there is no overlap in coverage; customers and prospects are called upon by only one salesperson

Improved customer service – assigning responsibility to a single salesperson helps to ensure that all customers and prospects receive adequate servicing

More accurate evaluation of performance – if territories are relatively equal with regard to workload and potential, then salesperson performance can be compared on an equal basis; if territories are unequal in a known way, then adjustments can be made in evaluation of unequal performance

WHEN NOT TO ESTABLISH SALES TERRITORIES

Sales coverage is far below sales potential – e.g., a new company wants to cherry pick for the most profitable prospects first

The sales force is highly specialized – e.g., when the sales force is organized along the lines of product specialty rather than along the lines of customer location

Sales are made on the basis of personal contacts and by referrals

SOME GUIDELINES FOR DESIGNING TERRITORIES

Sufficient potential – with insufficient potential, a salaried salesperson will not be used effectively, and commissioned salespeople will leave the company for greener pastures

Reasonable size – is a salesperson’s time being spent traveling or making face-to-face sales calls?

Adequate coverage – is the salesperson able to service all accounts and able to meet new prospects?

Minimum impediments – try to set territories such that rivers, mountains, railroads, etc. set the borders of territories rather than run through the middle.

DESIGNING TERRITORIES

Determine appropriate focal points and boundary areas

Political boundaries – state, city, county, etc.

MSAs –

Trading areas –

Natural boundaries – mountains, rivers, railroads, etc.

Determine territory shape for efficient use of time and routing

Wedge – slices of a pie; use when salespeople work out of a common office

Circle (or square) – use when salespeople work out of a home office

P.S. Then there is

Category Management: Relates to someone being given the responsibility of managing a ‘Category’, example ‘Footwear’, they would manage Shoes, Socks, etc. but they would not be responsible for shirts etc.

Also thanks to Tom at Golden Circle for the additional insights.

The reality is that most sales managers do not spend enough time with their staff in a coaching capacity. Providing constant feedback and being a role model who demonstrates the right skills.

Many managers today are still focusing too heavily on short term efficiency and not long term effectiveness. Development of staff through on-the-job coaching is a critical function of modern day managers but can take second place to some of the more urgent, but less important priorities.

On-the-job coaching is something that managers recognise they need to do with junior members of the team. When it comes to salesperson with several years experience, the sales manager would prefer not to do it. The rationale goes along the lines that the senior people do not need it. They have been selling for years and they would resent the sales manager going out on a coaching day with them.

It is true that it is not much use you going out to coach people if you cannot add anything to the call. However you are the sales manager and you should be able to add something even to the most accomplished salesperson.

Added to which is the fact that those sales people who have been selling for years are not automatically good salespeople and as we have already discussed, the job of selling is constantly changing.

The 12 step approach for on-the-job sales coaching involves the 3 phases:

• before the call,
• during the call,
• after the call.

Before the call

1 Check the customer records etc.
2 Question the objectives of the call. “Anything else? Can we aim higher?”
3 Review the call/sales plan/presentation plan:

• Key sales techniques
• Likely objections and solutions
• Any problem areas and recommendations
• Role play important points if necessary

4 Agree on your role. Usually shut up and observe the call.
5 Summarise and encourage

During the call

6 Watch and listen

• How the call goes versus the plan
• Strengths
• Weaknesses
• Improvements from last time

After the call

7 Decide on the key learning points

• 2/3 no more
• Identify some good points

8 Overview the call

• What happened versus the plan
• Let the salesperson lead: “How did you go against your plan?”
• “What did you achieve compared to what your objectives were?”
• Don’t get into the detail of the call at this stage

9 Analysis of strengths

• What did you do well
• Let the salesperson take the lead. Add your own comments

10 Analysis of weaknesses

• “What would you have done differently?”
• Use non directive questioning techniques to let the salesperson solve his own problems. Avoid telling. Focus the questions to the areas where the key learning points are.
• Why did it go wrong?
• What should you have done? Why?
• Role play if necessary

11 Agree on action plan to address the learning points
12 Agree on the next action with the customer

How many of us have been in business for a while and things have been going along smoothly, sales coming in, customers are happy. Then you notice that you are not winning the business you used to win.

In fact, you notice some of your customers are using new players in the market place when they once used you, or they are not doing anything at all. You follow up and find out that your clients are keen to work with the new players because they bring something different, new or unusual. Or they are distracted by other things.

Initially, you may take it as a personal rejection – “they don’t like me”. Then you stop the self-wallowing and realise that:

• a. You missed out on a new trend or a new idea that was gaining momentum in your market, so your approach is not up-to-date or relevant any more.
• b. You have not kept pace with changes in your market. Your business is at risk of becoming obsolete. You are losing your competitive edge.

With the commoditisation of many products and processes, the business landscape can change over night and you can lose your edge. What was once a high value, premium or customised product or service can be reduce to a “me2” very quickly, or become obsolete.

I have been reading a great book called A Whole New Mind by Daniel Pink, which talks about what can and can’t be replicated easily. He focuses on, among other things:

Abundance, Asia & Automation

He talks about how we now live in a world turned upside down by rising affluence, the outsourcing of “good jobs” overseas and the computerisation of our lives. He focuses on a world fast shifting from the information age to the conceptual age.

This got me thinking about how we now need to regularly look at our markets and especially our competition and what they are up to. Often the old SWOT is done (strengths, weaknesses, opportunities, and threats) where the original business plan is put together and then repeated once a year if you’re lucky.

Given the rate of change, new innovations and ideas in the market, how often do we need to assess our competitors and our competitive edge? I am not sure, but all I know is that once a year is not enough these days. There is so much competition out there competing for people’s time, attention and money, it’s hard to keep up. As a sales person we need to know our competitive edge – why we are better than the competition.

And if we have been around long enough we know that competition isn’t just our direct competitors either; it can be anyone. Your competitors can include:

• Current competition.
• Peripheral competition.
• Emerging competition.

In the type of business I am in (consulting, assessment and training) my competition can vary and can also include internal company HR or Learning & Development departments.

However, it can also be the economy, an election, wars, droughts, etc. While I would love to be, and perhaps should be, an essential service provider for any business (we all need to be effective at sales and service), in reality my business is not perceived that way by companies. If things get tough or people get distracted, customers can lose sight of what may be important to them and not invest their money and time in your offering, even though they should.

Being market aware, community aware and world aware is part of our competitor analysis these days. Rather than sit back and think it is all too hard, I have found that regularly reviewing where you are at in relation to everyone else in your space and checking the broader market is a good idea.

This doesn’t mean you have to resort to investing in major market research campaigns. In reality, if you are mindful, you are really researching every day – the information is often right in front of you.

Internet: The internet is a powerful tool for finding information on a variety of topics.

Personal visits:If possible, visit your competitors’ locations. Observe how employees interact with customers. What do their premises look like? How are their products displayed and priced?

Talk to customers:Take careful note of what your customers and prospects are saying about your competitors.

Competitors’ ads / websites/ etc.:Analyse competitors’ ads, websites, marketing material, etc. to learn about their target audience, market position, product features, benefits, prices, etc.

Speeches/ presentations:Attend speeches or presentations made by representatives of your competitors.

Trade show displays: View your competitor’s display from a potential customer’s point of view. What does their display say about the company? Observing which specific trade shows or industry events competitors attend provides information on their marketing strategy and target market.

Written sources:

• General business publications
• Marketing and advertising publications
• Local newspapers and business journals
• Industry and trade association publications
• Industry research and surveys

Understanding your competitors is an integral part of your sales planning process. By investing the time in researching your competitors you will be able to:

1. Understand your competitor’s advantages and disadvantages relative to your own position.
2. Highlight key areas of focus based on your position within the market compared to competitors.
3. Provide an informed basis to develop strategies to achieve competitive advantage in the future.
4. Be prepared to handle questions or challenges posed by potential customers in relation to competitors.

Ask yourself regularly:

• Who are the key competitors in your market place?
• What is a profile of each of your key competitors (market position, size, distribution, reputation)?
• What are your competitors’ primary objectives (to be number one in market, rapid increase market share, to specialise in a particular segment of the market)?
• What do they do well?
• What don’t they do well?
• What threats do your competitors pose?
• What is your primary competitive advantage over them?

An important note: By reading outside your area of specialisation you can learn a lot about other markets and ways of doing business that might just translate into a competitive edge for you. Remember the old saying: “A mind is like a parachute – it only works when it is open”. So be open to new ideas and change. It’s an essential life skill.

Have you ever sat through a pointless meeting and calculated how much of the company’s money was being wasted on individuals sitting around a table completely zoned out?

Sales meetings in particular are an important tool for helping you to keep your team’s performance on track. Effective sales meetings don’t just happen, and improving your meetings isn’t just a case of ordering drinks and a plate of muffins. Successful meetings require a range of skills, a disciplined approach and an effective leader.

Here are some handy tips on how to prepare for and conduct effective sales meetings so that you and your team get the most out of them.

How often should sales meetings be run?

The regularity of when you run sales meetings may vary depending on your specific work environment, the geographic spread of your sales team and the nature of the work that you do. However, generally speaking in most sales environments, it is important to have a weekly and a monthly sales meeting as a minimum. This certainly provides a strong foundation and can be supported effectively by individual and regular sales coaching of both a formal and informal nature.

In addition, your meetings may vary depending on when they run.

The weekly meeting – focus on:

• Go through previous week’s results.
• Share in successes of previous week.
• What do we want to achieve this week?
• Key actions required before next meeting.

The monthly meeting – focus on:

• Go through previous month’s results.
• Share in successes of previous month.
• What sales results do we want to achieve?
• How do we go about achieving them?
• Changes, improvements and innovations.
• Sharing of knowledge and information (individual presentations; could include product, process, market, customer info).
• Review current sales objectives, confirm if still relevant and adjust if appropriate.
• Re-link focus to overall sales goals, strategies and performance targets.
• Key actions required before next meeting.

Preparation for the sales meeting

Gathering team results and reconfirm or redefine sales targets. Notify people of the meeting with plenty of notice. Often it is best to organise a standard day and time when you meet. This creates consistency and sets expectations.

Running the sales meeting

1. Always start and finish on time. Reward people who are on time by starting the meeting as scheduled. When you wait for latecomers you penalise those who have arrived on time – and you inadvertently reward those who come late.
2. Stick to the agenda. A meeting is held for a purpose, so keep its main objectives and desired outcomes clearly in mind at all times. Be prepared with handouts, questionnaires, overheads etc. Distribute the agenda several days before the meeting. The agenda is considered a commitment of what will be covered, by whom and for how long. Most salespeople complain that meetings have no agenda and it goes nowhere far too slowly.
3. Announce the successes. Take a few minutes to congratulate and thank the people who are contributing, meeting goals and closing deals. Get them to tell their successful sales stories to the group so people can learn from their experiences. Make sure you share this around from meeting to meeting. A person who may be struggling can still have some successes, so encourage them by having them share their successes too. What you pay attention to will grow – catch them doing something right!
4. Make it fun (while still being professional). If you are not creative on the fun-making side of things, assign fun to one or two of your sales team who are. Take advantage of the creativity of your people. This will cause some anticipation throughout the meeting.
5. Get staff involved. Have a Timekeeper, a Notetaker, a Whiteboard writer and a Presenter.
6. Good meetings have leadership; bad meetings do not. The success of a meeting will depend largely on your ability as chairperson to get things done efficiently and to reach group decisions in minimum time. Reflect on the questions below in relation to how your role as chairperson affects the outcomes of your sales meetings.

Avoiding the ‘zzzzz’ factor in sales meetings

Check your meeting format:

• Is the style of your meeting a good match for the personality of your team or is it just a match for your own personality?
• Have you spent time reflecting on the type of rapport or atmosphere you want to create in your meetings?
• Do you tend to conduct meetings in the fashion you do simply out of habit?

Reflecting on these questions will provide you with an appropriate direction to take to ensure you and your team are engaged and gain the most out of your meetings