Simple Process Guaranteed to Increase Sales
When seeking ways to increase sales, most sales managers and business owners tend to focus on improving the close ratios. While doing so is a legitimate tactic, improving the close ratio of a sales team can be challenging. On the other hand, increasing opportunities for the sales team is a fairly easy task.
If the close ratio of the sales team is 40% and the sales team generates 100 opportunities each week, then the result is 40 closes or sales. To improve the close ratio to 60% within the 100 opportunities each week is a challenge. On the other hand, if the number of weekly opportunities for the sales team is increased to 150, and the close ratio remains constant at 40%, then 60 sales are generated during the week.
In other words, the same result occurs for either choice, but increasing the opportunities is an easier path to take versus increasing the close ratio. The process identified and described in the following paragraphs is guaranteed to work because it is built on and around the simple objective to increase opportunities for sales personnel rather than to improve closing ratios.
An increase to sales is likely to be realized quickly once these few, simple additions and adjustments to the selling process are implemented. The additions and adjustments are elements of a process, not a procedure. Consequently, any of the elements identified may be addressed and implemented without having to wait for another element to complete.
Increase face time of outside sales team with present and potential customers. Think of your business as a professional football team. The sales personnel are the running backs. They carry the ball (products and services) to existing and potential customers. The more time the sales team is in front of a customer, the greater the likelihood that a sales event (touchdown) will occur.
Recently a business owner told me that his sales were dropping and he asked me what he could do to turn things around. He said that their company recently purchased a sales software program that worked well with his mail order division, so he employed the software in the territory sales division. The software program called for each sales rep to make fifty calls each day seeking an appointment before heading out to make calls. That’s half a day’s time! I simply told the business owner that his running backs were sitting on the bench the entire first half and not scoring touchdowns, so he should find others to make the phone calls so his sales team members could optimize their time in front of customers.
Establish a quota or increase the quota of telecommunication contacts with existing or potential customers required each day for the inside sales team. As stated previously, the objective of this process is to increase opportunities for the sales teams. If your business has an inside sales team, then establish a daily quota for outgoing calls to existing customers to sell products or to potential new customers to introduce your company and its products and services. If you already have daily quotas, then increase the number. It is amazing what the impact of just one or two additional calls each day will have on sales.
All sales personnel must develop and submit their sales contact plan each week. Every very good and great sales rep has a plan for the day, the week and the weeks that follow. Every very good and great sales rep shares that plan with the sales manager. Every very good and great sales rep knows the importance of providing this timely marketing information.
Most all other sales reps don’t really have a plan for much beyond a day or two. You know, it’s the where should I go and what should I do today approach. That type of planning is not beneficial to increasing sales. Some type of formal routine reporting and planning feedback must be installed to assure increased sales.