Copyright © Bruce Ian Rasmussen, 2006 A Business Manager's guide to improving sales effectiveness

Copyright © Bruce Ian Rasmussen, 2006 Sales Function Productivity Drivers Sales Research - Market Understanding - Market Segmentation - Market Assessment - Market Prioritisation - Market Targeting Investment & Organisation - Size - Structure - Deployment - Product - Market - Activity - Territory Alignment - Sales and Promotional Alignment - Inter Departmental Alignment People - Selling Competencies - Recruiting - Training - Promotions - Coaching - Supervision - Motivation - Evaluation - Progression Sales Systems - Compensation - Incentives - Benefits - Data Provision - Lead Generation - Targeting - Provision of Tools - Sales Methodologies - Sales Automation - CRM - Provision of Process - Strategic Selling - Mentoring - Partnering - Consultative Selling

Copyright © Bruce Ian Rasmussen, 2006 Market driven organisation definition: “demonstrates a superior ability to understand, attract and keep valuable customers”

Copyright © Bruce Ian Rasmussen, 2006 Successful market driven organisations 3 key elements: Customers Collaborators Competitors Channels Superior Ability to Understand, Attract and Keep Valuable Customers Configuration -Focus on superior customer value -Coherence of structures & systems -Adaptability Shared Knowledge Base Culture is externally oriented Capabilities - Market sensing - Market relating - Strategic thinking

Copyright © Bruce Ian Rasmussen, 2006 Turbulent Times more supply and less differentiation more global and less local more competition and more collaboration more relating and less transacting more sense-and-respond and less make- and-sell

Copyright © Bruce Ian Rasmussen, 2006 Services Marketing “Making the Intangible Tangible”

Copyright © Bruce Ian Rasmussen, 2006 Marketing Services - Not Products Intangible performances Customer involvement in production People are part of the product Quality control more difficult Harder for customers to evaluate No inventory Importance of time factor Different distribution channels

Copyright © Bruce Ian Rasmussen, P’s of Services Marketing Customers Product (service) Price Promotion Place & time Participants Process Physical Evidence

Copyright © Bruce Ian Rasmussen, 2006 Planning, Creating & Delivering Services Corporate Objectives & Resources Market opportunity Analysis Strategic Service Concept Statement Market Positioning Statement Service Marketing Concept Resource Allocation Analysis Service Delivery Process Service Operations Concept

Copyright © Bruce Ian Rasmussen, 2006 Value Propositions “The value decade is upon us. If you can’t sell top quality product at the world’s lowest price, you’re going to be out of the game… the best way to hold your customers is to constantly figure out how to give them more for less.” - Jack Welch, Chairman, General Electric

Copyright © Bruce Ian Rasmussen, 2006 Components Of A Selling Organisation

Copyright © Bruce Ian Rasmussen, 2006 Components of a Selling Organisation

Copyright © Bruce Ian Rasmussen, 2006 Measurement - People and culture knowledge competencies skills attitudes behaviours motivation

Copyright © Bruce Ian Rasmussen, 2006 Measurement - People and culture salesperson success profile employee satisfaction turnover peer and subordinate reviews culture check

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Sales force activity account planning targeting calls reach frequency

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Sales force activity hours coverage maintenance prospecting needs assessment

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Sales force activity demonstrations proposals evaluations solutions customer service “selling, servicing, admin, other checklist”

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Customer results customer satisfaction customer retention penetration customer loyalty

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Customer results repeat rates complaints returns message memorability

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Company results sales revenue profit orders

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Company results collections sales per rep market share value perception brand equity

Copyright © Bruce Ian Rasmussen, 2006 Measurement - Importance and reliability Measure Reliability Measure Importance People & Culture Sales Force Drivers Customer Results Activity Company Results

Copyright © Bruce Ian Rasmussen, 2006 Selected Drivers

Copyright © Bruce Ian Rasmussen, 2006 Sales Force Size size is independent of productivity phased growth is rarely optimal –increase when opportunity is realised –invest in the potential - role of market analysis gradual downsizing doesn’t work –morale –customers market deployment better than more resource

Copyright © Bruce Ian Rasmussen, 2006 Methods of sizing sales force “same as last year” financial method –based on revenue forecast –BUT sales force investment drives sales competition parity –does the competition know what it is doing? market-based approach –identify target customers –segment target customers –segment coverage strategy –sales force sizing

Copyright © Bruce Ian Rasmussen, 2006 Best approach to sizing 1.use market-based method 2.check with financial method 3.do competitor check 4.do target customer check coverage, contact frequency, etc.

Copyright © Bruce Ian Rasmussen, 2006 Sales force structures generalist –Managable product line –Similar approach - all customers market-based –Better effectiveness through customer knowledge –Can conflict with product strategy product-based –Large, complex product line –Independent or integrated activity-based –Hunter/farmer –HO/local –product/finance –Goal on individual AND team

Copyright © Bruce Ian Rasmussen, 2006 Hiring skills that lead to sales success –Inate desire to serve –Strong work ethic –Integrity –Ability to put others at ease –Effective communication skills –Willingness to listen None of the above can be learnt!!

Copyright © Bruce Ian Rasmussen, 2006 Value of Hiring Tools 2 interviews - 14% link between interview prediction and job success Ability composite test 53% Tryout 44% Data on Resume 37% Reference check 26% Experience 18% Interview 14% Training and Experience rating 13% Academic Achievement 11% Education 10% Interest 10% Age -1%

Copyright © Bruce Ian Rasmussen, 2006 Best source for candidates Referrals 48% Recruiters 31% Competitors 10% College placement offices 9% Newspaper ads 9% Survey - Sales and Marketing Management magazine

Copyright © Bruce Ian Rasmussen, 2006 Training - required competencies knowledge ability/capability skills

Copyright © Bruce Ian Rasmussen, 2006 Training - knowledge product customer technology –Database, information management, tools, etc. company –Policy, values, culture, etc.

Copyright © Bruce Ian Rasmussen, 2006 Training - ability/capability customer and industry research customer profitability maximisation develop best selling process quantitative analysis problem solving

Copyright © Bruce Ian Rasmussen, 2006 Training - skills prospecting needs identification time management territory management listening persuasion presentation negotiation closing account maintenance and expansion

Copyright © Bruce Ian Rasmussen, 2006 Training - program enhancement rapid prototyping works individualised training is better active learning is better training modules structured around the actual business problems are better

Copyright © Bruce Ian Rasmussen, 2006 Effectiveness/Efficiency tradeoff Effectiveness Efficiency Self Study External Seminars Classroom Participant & observation training ‘ ‘On-the-job’ Training

Copyright © Bruce Ian Rasmussen, 2006 Motivation 5 universal motivators –achievement –social affiliation –power –ego gratification –survival

Copyright © Bruce Ian Rasmussen, 2006 Motivating sales force productivity territory design sales support recruiting and promotions training compensation recognition programs coaching and supervision communication culture company factors

Copyright © Bruce Ian Rasmussen, 2006 ROI on sales training…