© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Your Time and Territory Why is time so valuable for salespeople? What can you do to “create” more selling time? What should you consider when devising a territory strategy? How does territory strategy relate to account strategy and building partnerships? How should you analyze your daily activities and sales calls? How can you evaluate your own performance so that you can improve? Some questions answered in this chapter are: 15-2 CHAPTER 15 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin “My biggest mistake was the idea that the quantity of the calls was more important than the quality.” ~Susan Flaviano Lonseal

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 8 hours x 240 days = 1920 hours per year $40,000  1920 = $20.83 per hour $50,000  1920 = $26.04 per hour Salespeople must make every hour count to be successful Allocating resources well often spells the difference between stellar and average performance 15-4 The Value of Time McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Stage One –Set goals and determine what is to be accomplished Stage Two –Allocate resources and determine strategies to meet your goals Stage Three –Implement time management strategies Stage Four –Evaluate performance and determine whether the goals will be reached 15-5 The Self-Management Process McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved The Self-Management Process McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Setting Goals The need for goals The nature of goals Types of sales goals –Performance goals –Activity goals –Conversion goals 15-7 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin The Relationship of Goals

© 2007 The McGraw-Hill Companies, Inc. All rights reserved Goal Calculations McGraw-Hill/Irwin Monthly earnings goal (performance goal):$6000 Commission per sale:$750 $6000 earnings  $750 per sale = 8 sales Monthly sales goal (performance goal):8 Closings goal (conversion goal):10 % 8 sales x 10 prospects per sale = 80 prospects Monthly prospect goal (performance goal):80 Prospects per calls goal (conversion goal):1 in 3 80 prospects x 3 calls per prospect = 240 calls Monthly sales calls goal (activity goal): calls  20 working days per month = 12 calls Daily sales calls goal (activity goal):12

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Performance and conversion goals are the basis for activity goals. Activity goals must be the last goals set because they are determined by the desired level of performance at a certain rate of conversion. Conversion rates are affected by the salesperson’s strategy Setting Sales Goals McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Allocating Resources Resources to be allocated Where to allocate resources Account classification and resource allocation McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Grid analysis –Classifies accounts on the basis of the company’s competitive position and sales potential –Account opportunity –Strength of position ABC analysis –Ranks accounts by sales potential The grid and current customers –Customer share –Account share Allocating Resources (continued) McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Customer relationship management (CRM) software –One database of customers –More complete grid analysis –Pipeline analysis Investing in accounts –Allocating the appropriate amount of time and resources to accounts Allocating Resources (continued) McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Start early Manage responsiveness Schedule in advance Use down time wisely Implementing the Time Management Strategy McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Daily activity planning Guidelines Planning process –Using the computer for planning –Need for flexibility Implementing the Time Management Strategy (continued) McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved Activities Planning Process McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Making More Calls Routing –Routine call patterns –Variable call patterns Types of routing plans –Circular routing –Leapfrog routing –Straight-line routing –Cloverleaf routing McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved The Circular Approach to Routing McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved The Leapfrog Approach to Routing McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved The Straight-line Approach to Routing McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved The Cloverleaf Approach to Routing McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Making More Calls (continued) Zoning Using and telephone McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Every salesperson should learn to handle paperwork efficiently To minimize paperwork: –Think positively about paperwork –Do not let paperwork accumulate –Set aside a block of nonselling time Using the computer to handle paperwork and communications Handling Paperwork and Reports McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Postcall analysis –Write down what occurred and what needs to be done Activity analysis –Set activity goals, then analyze Performance analysis –Evaluate performance relative to performance goals set earlier Productivity analysis Identify which strategies work Evaluating Performance McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. A sales territory can be viewed as a small business. Managing a territory involves setting performance, activity, and conversion goals. To manage customers well, salespeople must analyze their potential. More calls can be accomplished by moving nonselling activities to nonselling time. Effective planning of the salesperson’s day requires setting aside time for important activities. Salespeople must manage their skills Summary McGraw-Hill/Irwin