We have several teams, each leader is responsible for bringing in business for his team and each team does its own follow up. We sometimes cross paths with leads. Some people don”™t have as much in their forecasts as we expected. If we don”™t get more organized, the second half of the year could be brutal.
Ensuring tools are in place so that everyone can share and support everyone else would be a good next step. Building a process to strategically pick and pursue accounts would also be helpful. Documenting what”™s going on and who”™s doing what will cut down on surprises.
The good news is this company has already built teams and assigned responsibilities for sales. Those are important first steps in building a sales-driven company, but it”™s going to take organization and intention to hit goals going forward. Step in with a sales-management plan to get things whipped into shape.
Work backward from the outcomes (sales) to the inputs (sales inquiries, initial introductions to decision-makers, information gathering, pricing discussions and proposals confirming offers). Do the math: How much activity is required overall in order to hit the desired number of closes?
For example, let”™s say on average 10 inquiries lead to seven introductions to decision-makers and five leads that complete an information-gathering process. After four pricing discussions, three companies accept proposals and one closes. So it takes 10 leads, seven decision-maker introductions, five at the information-gathering stage, four discussing prices and three proposals to get one sale. Multiply by the total number of sales needed. If the goal is 10 sales, it will take 100 leads, 70 decision-maker contacts, 50 prospects providing information, 40 pricing discussions and 30 proposals.
Create specific individual and team goals. Put them in writing. Make sure individual goals add up to or exceed the total of what”™s needed at each stage to hit the company”™s overall sales goal.
Track individual activity in Excel or in a CRM (customer relationship management) system. Make reporting on activity mandatory. Spend some time on analysis. Figure out who”™s on track and who needs help at which stage.
Develop best practices. Look at who”™s getting the highest and fastest conversion rates at each stage. Discuss what everyone can do to replicate those results.
Most sales people report that some 30 percent of the leads that close come from their own efforts and another 30 percent to 40 percent of closes probably come indirectly from their prospecting efforts. In other words, sales people are most invested in the leads they generate.
How can you help sales people generate more leads? Make a list of demographics that separate out the company”™s targets from the universe in general. Look for a database that identifies individuals or companies by those demographics. Decide how to carve up the database so people aren”™t stepping on each other”™s toes.
Agree on a standard approach process. Do the people on the teams send out a letter, followed up by a phone call? Do they go to trade shows to pick up leads? How about connecting with targets via LinkedIn? Whatever is agreed, make each person responsible for his or her own approach. Remember, commitment to follow up is generally greater if people work to get the lead.
Keep a database of all active prospects, indicating who in the company is in charge of the lead. If a lead surfaces that isn”™t assigned, add it to the list, give it to someone and track the follow through. If leads in the database are sitting dormant, re-assign them to see if mixing things up can get them moving.
Looking for a good book? Try “Topgrading for Sales: World-Class Methods to Interview, Hire, and Coach Top Sales Representatives,” by Bradford Smart and Greg Alexander.
Andi Gray is president of Strategy Leaders Inc., www.StrategyLeaders.com, a business consulting firm that specializes in helping entrepreneurial firms grow. Questions may be e-mailed to her at AskAndi@StrategyLeaders.com or mailed to Andi Gray, Strategy Leaders Inc., 5 Crossways, Chappaqua, NY 10514. Phone: 877-238-3535. Visit www.AskAndi.com for archived articles.
