Managing salesforce
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The document discusses various aspects of designing, managing, and motivating a salesforce, including: 1) It discusses the importance of carefully designing the salesforce structure, objectives, strategy, size, and compensation. It also covers recruiting, selecting, training, supervising, and evaluating sales representatives. 2) It provides details on recruiting and selecting sales representatives, including creating job descriptions, identifying critical skills, conducting interviews using evaluation grids, checking references, and using aptitude tests. 3) It discusses training sales representatives to improve their knowledge of the company, responsibilities, products, sales skills, and morale. It also covers supervising representatives through fieldwork, technology, and providing direction, guidance, encouragement,
Managing salesforce
- 1. DESIGNING THE SALESFORCE Sales personnel serve as the company’s personal link to the customers.The sales representative is the company to many of its customers.The sales representative who brings back much needed information about the customer.Therefore,the company carefully needs to consider issues in salesforces design,the development of salesforce objectives,Strategy, Structure, Size, and compensation. Sales Force Objectives and Strategy
- 2. MANAGING SALESFORCE Once the company has established objectives,Strategy,Structure,Size and compensation, it has to move to recruiting,selecting,training,supervising,motivating,and evaluating sales representatives. Recruiting and selecting sales representatives Recruiting Superb sales managers know the value of a solid plan to do the upfront work required to attract, interview and select the best sales performers. They have determined when and where interviews will be conducted, as well as when the identified top candidate will come aboard. Before skilled sales managers begin interviewing prospective candidates they know what they are looking for. A well thought out job description, ideally tested and verified at least one level above in management will provide a good template for selection. In the absence of a formal job description, soliciting the input of the best sales representative currently on your team works pretty well too. Next, identify the critical skills needed to be successful in sales. Two sets of data will make up the composite picture of the candidate. One is "manifested" skills, the other "abilities and aptitudes". Manifested skills are those that are recognized through interviews, work experience and reference checks. For the most part, they are subjective since they are judgment calls made by you and others regarding the candidates' likelihood of success in your organization. Prior to interviewing candidates create an evaluation grid that contains all the "manifested" criteria. This will keep you focused during the interviews. Candidly, these are clear indicators of what you value in your representatives. A few examples of these criteria might include: years of successful sales experience in the same or related industry performance compared to quota written and verbal communication skills appearance and general demeanor listening skills basic intelligence - ability to think quickly and clearly while delivering concise answers to your questions. It would be useful to assign a weighted value to each item signifying the relative importance you place on each one. Use the grid to score the interviewees and develop your short list of candidates.
- 3. Selecting Prepare a checklist of questions to prequalify candidates during a telephone interview. This step will determine whom you wish to interview in person. Consistently using the same set of questions in both the phone interview and the in-person interview will enable you to determine your best-qualified individuals. Additionally, using a Q & A pattern avoids haloing of candidates. Choices are an inevitable part of life and advisedly we recommend you select at least two finalists based on your "manifested" criteria. Here's why: A written offer of employment that is not accepted will delay the timetable undoubtedly committed to other management. At this step checkout all finalist references very thoroughly. Have developed a pre-set list of questions that can be posed to every reference. Offer penetrating questions like "rank David on a scale of 1 to 10 in salespersonship, personal qualities, work ethic and sales performance to quota." A question such as "If there is one thing you can think of that would improve the sales performance of David, what would you think it would be?" will open up the reference to tender details you might never have uncovered otherwise. The point is use some imagination at this step, as the more penetrating and thoughtful your questions, the better you are able to validate your prior subjective candidate assessments. Now go to the second set of skills or objective criteria, which are the "aptitudes and abilities" of candidates. The most progressive organizations have correlated how human style and behavior affect a sales persons' ability to perform in a sales role. These can be obtained through formal assessment tools which are available today. This type of testing can be used to match the candidate's personality or style with their adapted sales style. They can also determine how the candidate will function in a work environment. The real value lies in the ability to match how your most successful people function and what their styles are with those of the candidate. Tests results that are too far astray from what you need indicate a probable candidate misfit for the position. To sum up, start the interviewing process fully knowledgeable about what skills, characteristics and work experience you are seeking in your candidate. Then use assessment tools which will provide you a more complete picture of the individual than simply your instinct, experience and reference checks. Hiring Now you have succeeded in attracting the finest candidate you can find in your designated timeframe. This is not the time to rest on your laurels, so to speak. Your introduction of the new representative to your team ensures the assimilation into your group is positive. Attention to this detail is a must! Think about it. If you spent this much time planning, interviewing, doing reference checks and succeeded to this point, this is the time to maintain control of the process. This is an opportunity to demonstrate your genuine concern for your new team member and identify the new representative as a valuable member of your team. Your personal interest in this step will be appreciated and respected by the new representative and your team. Before your candidate actually steps into this position, put together a "Getting Started Plan". In it you should identify all activities, objectives, responsible parties and dates targeted for
- 4. completion of each. The list needs to be chronologically prioritized with most important activity to least important. As these activities are completed, use this as an opportunity to discuss the progress the new sales person is making. Your positive feedback will energize the new representative and serve to encourage completion of activities even faster. A couple of milestones are achieved when you take an active and participatory role in the hiring process. You establish your leadership style. Secondly, you create a roadmap for your representative that can be measured and from which both of you are accountable. You can confidently and knowingly put a "success" plan in place that is realistic, discerned, and from which you can lead from a responsible and authoritative position. Rather than leaving the new employee wandering about aimlessly, you put him or her on a plan so together you can measure progress toward every identified objective. Superior sales management begins at the time of the initial face-to-face interview. What happens thereafter and throughout your supervision of the representative is directly reflective of the leadership you have previously displayed. Furthermore supervising the sales activities, as well as setting meaningful and cooperative goals for your representative will be smoother thereafter. Delegation and abdication of any of the steps mentioned might require corrections that are time consuming. Not withstanding your new hire attaining quota immediately, it is difficult to imagine any single activity of sales management more gratifying than succeeding in bringing aboard another top performer. Training sales representatives Many companies send their new reps into the field almost immediately supplied with samples,order books, and description of the territory.Much of their selling is ineffective.Sales training programs have several goals: Sales representatives need to know and identify with the company. Sales representatives need to know the company’s product. Sales representatives need to know customers and competitor’s characteristics. Sales representatives need to know how to make effective sales presentations. Sales representatives need to understand field procedures and responsibilities. To get a return on your investment, training programs must be targeted to achieve particular objectives. Improve Company Knowledge Sales training should allocate sufficient time, and include an appropriate amount of information, to improve new and existing sales representatives' knowledge of the company. This should include its history, values and mission, and its policies and procedures with respect to dealings with external stakeholders and internal coworkers and managers.
- 5. Clarify Responsibilities and Expectations An effective sales training program leaves sales representatives with a full understanding of their day-to-day activities and responsibilities, as well as a clear vision of the process of advancement within the company. Highlight sales quotas or targets that are relevant and ensure that there are no questions before moving on to another topic of discussion. Improve Product Knowledge One of the primary objectives of a sales training program is to ensure a thorough understanding of the products and services that the salespeople will be selling. Sales guides with product specifications, features and basic pricing should be distributed before the training sessions so that sales representatives can review them beforehand--and raise any questions they have during the sales training session. It is a good idea to have manufacturing/supplier representatives and technical support/installation personnel on hand to answer any detailed questions sales representatives might have about the product. Salespeople should leave a training session with full confidence that they could effectively answer any question raised by the customer about their products and services. Enhance Sales Skills Sales training should also improve sales skills. Representatives should gain new knowledge about how to effectively prospect for and deal with clients, and learn new techniques to persuade them to purchase the product. Review common objections raised by clients and practice handling them in live drills, such as role-playing exercises. Upon completion of training, sales representatives should be fully confident in their ability to break the ice with new clients, build a solid business relationship with them, convince them of the value of the product and persuade them to purchase it. Improve Morale Sales training programs can and should lift morale. Sales representatives should leave the training program with a positive attitude and renewed motivation to perform at a high level. They should feel like a respected and important part of a cohesive team and take away a sense of pride for their company and the products and services they represent. Supervising sales representatives Supervision is generally used today to refer to time spent working with employees to be certain they are aware of the responsibilities of their job and how to perform them correctly.Because of the independent nature of the sales job, most of the supervisory activities sales managers engage in occur when they’re working with new hires. This seemingly simple and potentially
- 6. time consuming task should not be taken lightly, as it is a critical element of a sales manager’s responsibilities. Supervision was an important element in a manager’s position when “management” was first studied,and it continues to be in the twenty-first century.Today, the term supervisor is seldom heard, yet the act of supervising is no less important than it was a century ago. Sales managers—and sometimes sales trainers—spend time supervising people performing new tasks. They observe and then offer suggestions for improving their performance if needed. Their presence can help ensure that if the salesperson needs assistance, he or she gets it.Whatever you want to call it, supervising involves lots of “handson” time. Mark Baranczyk, the midwest regional sales manager for the Jacob Leinenkugel Brewing Company, spends about three days each week in the field with his sales representatives providing personalized supervision. During this time,he reviews the objectives of the call and helps out reps if he’s needed. If a call goes well, he’ll hold back on participating during the visit and offer a review of the representative’s performance during a “curbside coaching and counseling” session. Sometimes Baranczyk will know the representative is having difficulties achieving an objective with a client. During calls such as these, he takes a more active role helping to answer questions,providing insight, and overcoming the client’s objections. At times like these,Baranczyk needs to use coaching skills to help the salesperson identify and correct any shortcomings they have identified. We present more information about coaching later in this chapter.Sometimes managers don’t supervise new hires; more experienced sales personnel do.Some companies refer to people such as this as a first-level manager.1 Another source of supervisory assistance sales managers use is technology. If a company is using a CRM system, a supervisor can track an employee’s daily activities. This information can provide a sales manager with insight about how an employee is progressing with his or her customers, whether or not the person is achieving his or her objectives during calls, and using his or her time wisely. Even if all Sales Representatives had appropriate motivation and could see their own selling faults, the need would still exist for someone to decide what each Representative should do in relation to all other personnel – in order that the Company achieves its Sales objectives.Supervision primarily entails giving direction to each person’s work and in relation to the work of others. It should ensure that people do what they should do and do not do useless things or activities which harm overall Company objectives. Good supervision will also: (a) provide guidance to improve the abilities and activities of Sales Representatives in their work and (b) encourage and help them so that they can more easily help themselves.Sales Representatives have difficulties peculiar to their occupation since most of their work involves dealing with other people. Success or failure in a sale depends on decisions made by other people. While Representatives can influence the decisions they must face rebuffs, disappoint- ments, rudeness, and “brush-offs”. Supervisors need to offer encouragement and support to maintain high morale in their Sales force.Supervision of outdoor Sales Representatives has special difficulties. They work over a wide area and often they see no one from their Company for several days at a time. They spend a fair proportion of their time travelling, often alone. Sometimes they have to put up with unsatisfactory accommodation and meals. They frequently have to travel away from their families for long periods. In these circumstances – especially after an unsuccessful day – Sales Representatives can rate their work as unrewarding. These difficulties mean that Managers need to offer a high quality of supervision. The fact that
- 7. travelling time restricts contact between Supervisor and Sales Representatives makes the task even more difficult. MOTIVATING SALES REPRESNTATIVES Any manager, coach, or teacher knows the difficulty of getting people to perform better. It is one thing to get reps excited and energized at a sales meeting-but quite another to maintain their enthusiasm over the long haul. Whether you are trying to motivate your sales team or yourself, consider the following strategies that will drive you to action: Picture the Possibilities There are bumper stickers everywhere that call us to 'visualize world peace.' From global harmony to personal performance, visualization is an important step in the realization of any goal. Begin by imagining your company as the industry leader. See each of your representatives as superstars--and treat them that way. Goethe stated the principle this way: "Treat a man as he appears to be, and you make him worse. But treat a man as if he already were what he potentially could be, and you make him what he should be."Encourage your team to see themselves at the top of the sales chart or accepting your company's highest sales honor. Ask them to think about what they would do with the additional bonus or commission money after they have earned it. The seed of powerful motivation starts with seeing the desired result as if it already happened. Get Really Personal As you begin to introduce new sales goals, remember the channel every rep is tuned to: WIIFM-- 'What's In It For Me?' Describe how the new goals will benefit each member of your team in a personal way. You will ignite their energy and excitement needed get the job done. Keep in mind, "Winners are ex-losers that just got passionate." For enthusiasm to stick, the more personal the vision, the more powerful the performance. Praise Progress Motivation that leads to peak performance boils down to this basic formula: Accomplishment + Acknowledgment = Achievement2 Most human beings are driven by an innate desire to make a difference, to be of contribution. By acknowledging the success and good works of your people, you will promote exponential increases inperformance. One easy way to do this is to follow Tom Peters' advice, 'catch your people doing something right.' Be generous with praise. Look for ways to acknowledge people for their performance and effort. If their efforts fall short of your expectations use the 'Stroke and Kick Approach.' "Stroke" by acknowledging something good in their actions then "Kick" with a gentle nudge toward improved performance. For example, "Jerry, your closing skills are the best in the company, but what can be done to improve the number of calls you make?"
- 8. Show Me the Money Salespeople are motivated by money and the opportunity to make more. Financial incentives tied to achievement is just another form of acknowledgment. In fact, bonus money provides a double incentive. The chance to earn more money and receive the recognition that comes with the achievement. Be sure to tie reward to superior work performance. Special bonus rewards received without an extra effort are not special at all. When creating financial incentives to motivate your sales team, remember the German proverb: "He who likes cherries soon learns to climb!" The Ball Goes in the Cup In golf, landing on the green isn't enough to win the match. If you want your people to achieve specific goals clearly communicate your expectations and ideals for success. Don Shula attributes his success as the winningest coach in NFL history to the " result of a strong set of operating beliefs and principles.You won't be a successful leader if you don't have a clear idea of what you believe, where you're headed, and what you are willing to go to the mat for." Goals that are just out of reach--not out of sight, are the most powerful, so remember to keep them realistic. The more vivid the vision, the more real the results. No Train No Gain! Give your people the tools and training to become successful. Top teams learn from top coach's. Provide the best training you can afford. Consider it an investment that will pay higher dividends in outstanding performance. Thomas Jefferson said it best, "Of all of the investments you can make, education pays the best interest". Motivate yourself and your people with these ideas then sit back and watch the mountains move. EVALUATING SALES REPRESENTATIVES Once you have engaged sales representation, whether using a commission sales force or a house sales rep, or entering one of the collective arrangements, you will want to measure and evaluate sales performance on a regular and continual basis. There are a number of performance indices that should be followed and studied. Eight areas of evaluation are listed below; the first five focus on the question of how hard the rep is selling. Although much of what follows pertains more to managing an independent commission sales force, the principles may be extrapolated to evaluating other types of reps as well. It should be noted at the outset that sales increases are, by themselves, not an accurate gauge of performance, and a commission arrangement does not guarantee maximum sales and efficient self-management. 1. Visits. Consider first how many accounts your rep is visiting each season. Routinely review all orders received and books sold. This will tell you whether or not your rep is working every day. Track the number of sales calls made each season. If the number of visits is decreasing, it could be because of illness, lethargy, or even factors such as the overexpansion of a rep's line so that not as many accounts can be seen each season. In any case, the number and quality of visits is a key indicator. As a rep gets to know a territory better, he or she can get around faster and learn
- 9. what buyers are interested in; therefore, visits go more quickly and smoothly, leaving time for new accounts to be opened. The visitation pattern defines the rep's sales strategy. By seeing major accounts first, back orders on major books grow early in the season, and this gives a marketing director time to adjust print runs. The rep should call on small specialty accounts last in a season, and perennial stop-ship accounts last, if at all. At the end of each season, review what new accounts were opened, and be sure all major and midsize accounts were visited. Sales managers should closely track the number and quality of new seasonal orders received. (Note that this is different from backlist orders generated by bookstore computers and forwarded to reps for processing.) Comparing orders with itinerary/call lists will tell you how many visits yielded orders. (Often catalogs are left, or tentative orders taken, and the rep is told, "We'll mail the order in to you." The latter often require phone follow-up, so the number of orders taken is very important.) 2. Orders. While the number of orders is important, their quality may be more significant. If the rep is doing a good job, he or she will present the entire list, including backlist. Close perusal of rep orders will tell the sales manager whether or not the rep is using the full sales kit (if, for example, anthologies are sold to contributors, local bookstores), if your rep is a real care-giver (i.e., special attention is given to orphans on your list), if your rep understands the fine line between representing the publisher and representing the bookseller (i.e., includes text orders on sales rep order forms), and if your rep is opportunistic (i.e., responds quickly to important book reviews and finds new markets for your titles). 3. Unit Sales. Keeping in mind the changing size and quality of your new offerings and backlist as well as the percentage of cloth and paper of your list, you should track whether or not your frontlist and backlist unit sales are increasing or decreasing. 4. Net Sales. Certainly turnover in a particular sales territory needs close watching, but this can be a deceptive measure of performance. Factors independent of the rep's selling work can influence sales, for example: the growth of superstores and other chains, a shift in buying for an important regional chain into or out of a territory, and the opening or closing of key independent accounts. Major reviews of a lead book, or of a major regional book, can inflate sales figures independent of a rep's work, and economic conditions or natural disasters can depress sales. If you have the capability, track the value of orders taken, rather than the value of shipments, since the latter can be adversely affected by late arrival of stock and by credit problems. 5. Organization, Communication, and Information. Some aspects of this measure are intangible; nevertheless, reps should demonstrate in a concrete manner that they can handle the administrative side as well as the selling side of representation. The most important evidence that a rep is organized is a written itinerary. Reps should supply a list of accounts to be visited in each city, with dates; such a list keeps booksellers informed, ensures that important accounts are visited, and lets you handle special sales accounts yourself.
- 10. It is unusual with commission sales reps, but house reps often submit a weekly call sheet, detailing who has been seen (who is only getting catalogs, and who is stiffing whom on appointments), what is selling, what's not, and why (to provide an opportunity to reposition/rethink books and/or adjust print runs), coop/signing ideas or interest, customer service problems, and any reason why a backlist order has not been taken. Publishers often find that a monthly or seasonal summary memo is useful. Some information is most efficiently gathered by the press itself; how ever, since most university press sales managers are unable to get into the field very much, the reps' eyes and ears are extremely important to publishers' marketing decisions. The publisher may be able to follow trends shown in order data but still needs to know why certain accounts are doing better or worse compared to last season, and why it is seeing changes in frontlist/backlist buying patterns. In addition, the sales manager needs to hear firsthand what the impact of superstores or chain stores in the territory was and what accounts were opened or closed and which ones are in trouble. Sales reps must have the equipment to do the job. Their specific needs will depend on what kind of sales force you have, and whether or not a rep handles some administrative work for a sales group or not. These days, reps should have faxes, and one would hope that they have computer programs with the capability to develop a database of accounts for mailings and to develop, review, and then prioritize an account list. Obviously, independent commission reps will need to invest more in equipment than a house sales force will, since much of the latter's administrative tasks are handled by the publisher. Finally, whether you use house reps or commission reps, you have a right to expect prompt answers to your inquiries and speedy processing of orders and other paperwork. Again, how well reps handle this illustrates how well they respond to customers. 6. Sales Conference. This may be the only opportunity to size up your sales representatives face-to-face, so try to make the most of this time together. The first test, of course, is whether your reps show up. If not, that says something about the way they manage appointments with customers. Whether you have house reps or commission reps, you have a right to expect that they will be prepared, enthusiastic, and productive at sales conferences. The sales manager should assess the reps' performance at each sales conference, and first of all, ascertain if each rep has reviewed the catalog pages in advance. Consider the following: Does the rep help position books and clarify markets for titles? Can he or she provide a quick, thoughtful reality check on marketing concerns, such as print runs, jacket comps, ad placements, and places for parties? Does a rep subject a book or author to his or her political litmus test, or does your rep complain about every hardcover trade book and suggest that you do it in paperback instead? Does your rep go off on tangents that are of marginal relevance to the book at hand or are focused on narrow concerns of sales force, or does this person see the "big picture"? 7. Handling Regional Shows. These meetings are of varying importance to presses, depending on the overall list size and its salability within particular regions. Commission sales reps routinely attend and display books at these meetings. If you have commission reps, they should offer you the chance to participate.
- 11. Carefully coordinate what to display and offer. Observe how your rep prepares for exhibits with mailings to accounts featuring presses, titles, offers, and giveaways. In addition to orders, ask for a memo summarizing attendance, interest in titles, and new accounts seen (even if no orders are taken). From time to time, the sales manager should try to attend these regional trade shows, even if the press does not take its own table. It is a good way to observe your reps in action as well as a cost- efficient way to get closer to the marketplace. 8. The Intangibles. There are some truly subjective measures of performance. Here are a few. Does your rep find time outside of sales conferences to visit and talk? Does your rep check in during the season? When you (the sales manager) call, what is the rep's attitude? Does he or she see inquiries and requests for information as necessary to a sales director's job, not as harassment? When you share data on their performance, do they see this evaluation as helpful, not threatening? Does your rep allow you to sit in on occasional sales calls to key accounts? Will the rep graciously help with problems, such as nudging accounts on stop-ship? What do booksellers think of your rep's selling ability? Finally, it must be noted that if your reps are doing a good job, make sure you tell them so. Although we may forget it, we all know from our own evaluations how important this is.