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Will Your Sales Approach Support Your Growth Goals?

Thursday, September 27, 2018

How much revenue will your sales team close 90 days from now? If you can’t answer this question with any level of confidence you are not alone. Many leaders I chat with struggle to predict their sales team’s revenue even 30 days out. If you aren’t all over tracking your leading sales indicators, it’s next to impossible to know if how your team is selling will sustain your business’s growth goals. By rigorously measuring the rate at which those “things that cause sales to happen” occur you will quickly get to reliable forecasting and an optimized sales process.

Off the hop let me identify the magic ingredient that makes any dashboarding work - rigour. Sounds almost redundant but I bring up rigor because its the number one challenge in implementing and leveraging dashboards. If your data is inaccurate or incomplete due to lack of rigour you will make poor decisions based on what your dashboards are telling you.

To clarify rigour, I mean accurate recording by your team of their sales activities every day, as they perform them. No “I’ll wait until Friday afternoon to enter in all my CRM stuff” approaches allowed. Who has the energy on a Friday afternoon to enter a whole week’s worth of sales activity micro-data? No one, that’s who!

Moving on, here are the core sales activities that will serve as your leading indicators.

Diagnosis Meetings: Interactions with Sales Leads, the purpose of which is to Diagnose their Pains and determine if they are a Viable Sales Opportunity.  Not enough of these each week means a dry sales funnel in no time.

Demo Meetings: Meetings with Viable Sales Opportunities to demonstrate your product or service. Not enough of these weekly leads to a longer closing cycle as buyers often need to see what your product can do before saying yes to paying for it.

Solution Meetings: Interactions with Viable Sales Opportunities, the purpose of which is to finalize the version of your solution they’d like and allow you to solidify price.

Number of Proposals Presented: This value of this one’s pretty obvious.

As far as the goal quantity for each of the above, that varies widely from industry to industry and product/service to product/service. Generally, lower price point sales that are decided upon by a single buying influence require many more of each interaction type per week than high priced multi-buying influence ones.

The thing about sales activity goals is this – have one, for each activity. Work with your team to a) decide which things that cause sales to happen at your company should be measured, b) set the bar, c) adjust it over time until you discover the optimal amount of each activity required for reps to hit sales target. This continual optimization process is the path to confidence that your current sales process will support reaching your business’s growth goals.

An Otherwise Good Walk Ruined

Saturday, September 01, 2018

There is an old saying that goes, “golf is an otherwise good walk ruined”, referring to the frustrations inherent in trying to get that darned little white ball into the hole.  Achieving revenue growth may not always happen as quickly as we’d like, but it should not feel as frustrating as golf often feels.

Are you frustrated with your rate of revenue growth? If yes, below are some common causes of Revenue Generation Frustration and how to mitigate them.

You:  Business Owner & Sales Manager

Do you have a solid sales pedigree? If not, running even a small department can be challenging. Time ticks by and sales results don’t come.

If you are not a sales management expert, find a resource and get this task off your plate and onto theirs. Doing so is all upside – you lighten your load and have more time to do the stuff you love, such as leading the company into the future rather than being stuck in the sales weeds.

You: Abdicator

More dangerous than managing a function you aren’t an expert in, is not manage it at all. You just let your sales folks loose with a cell phone, laptop and gas card and wait for the sales revenue to come rolling in. This generally always fails.  Invariably results are tepid and when you finally dig in you find you are down 6 months sales salary and your revenue future looks pretty grim.

The sales function requires daily monitoring to assess what course corrections are required for success in the ever-changing business landscape.  See the advice in the paragraph above for how to fix this.

Low ROI

Your sales department should be self-funding. Salespeople should be generating between 3x to 5x their salary [depending on your margins] to be paying for themselves.

Take a good hard look and determine if your sales team is covering their costs. Factor in all costs related acquiring deals. There can be many reasons why they may be falling short [the comp plan is wrong, quotas aren’t right, headcount is too high, Lead Generation is too light]. Once you learn the underlying causes the fixes will be readily apparent.

No Leading Indicators

If your main sales success measures are primarily lagging ones [revenue generated, new implementations] you’ll continually be running behind.  Switch to frequent measurement – think daily, weekly, monthly – of those things that cause sales to happen.

A few to look at are:

a)       Pipeline Creation Rate: How many viable sales leads have been generated
b)      Number of Sales Calls conducted
c)       Number of Demos conducted

Identify your leading indicators and be rigorous in tracking them.

Flying Blind – No Dashboards

The value in measuring lies in using the data toward continuous improvement. Share the dashboards at minimum with the salespeople individually and review them together for coaching purposes.

Work together to determine what the numbers are indicating and what activity adjustments could/should be made to improve results. Depending on your appetite for a competitive sales environment you may share all results with the entire team.

No Recipe for Success

The number one cause of feelings of Rev Gen Frustration is a lack of a defined sales process. If no sales roadmap exists, the team may find their way more often than not, but it will be a continual struggle. This leads to lots of bad stuff [sales goals aren’t hit; commission payouts are low, and staff quit].

Hunker down with your sales team in a boardroom and capture a) your customer’s buying process and then b) your process to help them buy from you. This is the ultimate Rev Gen Frustration reducer.


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