By Todd Kasper
The affects of the 2008 economic stimulus package presented by the President and Congress are long gone. The continued news of the $700 billion dollar “bailout” and global recessionary trends seems to dominate the headlines. Add to that the distress caused by election year politics and we, as sales executives, have more than our share of challenges keeping our sales teams focused and productive in a slowing economy.
Economists are predicting a tough calendar 2008 fourth quarter and a sluggish 2009 first quarter, but for sales, survival means we need to attack rather than react. Here are five sales management priorities which you must move to the top of your list immediately:
Re-allocate your field time and your sales managers’ time
Work with your “A” players and new reps in lieu of your “B” and “C” players. Spend more time enabling the success of your top producers. When the economy slows down, the “A” players are the ones who find ways to “get it done.” They are the asset that renders your highest ROI.
In addition to “A” players, your managers must make it a priority to quickly “ramp-up” and evaluate new reps. We see far too many field sales managers “hang on” to new reps because of the time and hassle required to replace them.
The economic conditions dictate that new rep evaluation and “ramp up” time must be compressed. You can’t afford to “hang on” and have a sales manager spending time with an asset that will not perform.
Increase communications with your sales manager(s) and expect the same of them
This can be accomplished in many ways from group conference calls to web meetings.
Now is the time to step up communications efforts with your managers and sales teams. While many of us rely on email, “best practices” for poor economic conditions dictate personal contact.
By doing such, you will get “real time” feedback. Topics for such communications should be: account successes, market vertical triumphs, performance expectations, “street fighter” tactics, and competitive intelligence.
Re-evaluate your sales key performance metrics to assure their validity for managing in a slow economy
As economic activity slows down, sales cycle times lengthen. It is imperative that you and your field sales managers monitor sales cycle “dwell times.” Dwell time is the standard or “usual” time between each specific stage in your sales cycle. When dwell time exceeds standard, management must assess the opportunity.
Other metrics that need your attention are: average sales size, total number of proposals presented, proposals presented to current customers, presentations to prospective decision-makers, customer retention, number of customer referrals, and pipeline opportunities vs. sales forecast.
Examine prospecting efficiency
Rookie and veteran sales professionals have a tendency to let prospecting slide when times are good. Consequently, a slowing economy puts them into uncomfortable territory. Both their prospecting skill level and prospect targeting abilities are rusty.
The natural tendency is to overreact and begin calling on anyone and everyone. Much time is wasted that should be spent focusing on prospective customers who can buy.
This is the time for you, as the top sales executive, and your field sales management to concretely redefine prospective customer dimensions. In other words, delineate market segments, identify key prospects within those segments, and develop capture plans.
Plan to succeed
You will not survive an economic slowdown by simply hoping that your sales force sells more or your current customer base buys more. Account planning, territory planning, and pre-call planning are the keys to efficient selling in a down economy.
It’s time to review account plans or develop them, if you haven’t already. Account plans are the road map to selling more to your top accounts and prospects. It may be time to reassess pricing or bundling in order to pick off some of your competitors’ offerings.
Ask each manager and sales representative what kind of value added activities they are planning with key accounts and top prospects.
In addition, you should consider the answers to the following questions:
• How efficiently are your sales professionals managing their respective territories?
• How much time is spent traveling?
• How many prospect calls are being interspersed within current customer calls and meetings within each territory?
• What accounts are at risk and what actions has your sales team taken?
Finally, but perhaps most importantly, what kind of value is being derived from each live sales call? Who is controlling the sales call/sales process…your sales reps or your customers?
Our experience and research has demonstrated that all else being equal, formal pre-call planning generates one of the highest ROI rates of all sales activities. None of your sales team should be taking sales call effectiveness for granted in tough times.
The plain and simple fact is that your sales force is paid to move the customer to the next stage in your sales cycle. Very few can do it without planning for success.
Todd Kasper is vice president of sales for Interactive Resource Group Inc., a 17-year old customized sales training and consulting firm that specializes in helping technology firms to shorten sales cycles and increase sales force efficiency. For more information, please email Todd at tkasper@salestrainers.com.
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