THE EFFECTIVE SALES STAFF
by
Sam Boyer
The first 15 years of my business career were spent in sales,
sales management, and general management. The second 15 years have been
spent consulting to beer distributors. Having worked with dozens of sales
staffs, some effective, some ineffective, I have often wondered why one
sales staff is more effective than another. After years of interviews and
analysis there appears to be some common elements among the distributors
with effective sales staffs. These common elements are:
They have goals. Sales staffs without goals are like ships
without rudders. The distributor principle and/or sales manager must set
the pace and direction for the sales staff. Without goals, whatever is
achieved is “good enough”. “Good enough” will not cut it in
today’s environment of increasing costs. Goals for the distributorship
must be established and most importantly rolled down to the sales staff.
Does your distributorship have goals that grow your business?
They are properly supervised. The old saying of “inspect what
you expect” certainly holds true in the area of sales staff supervision.
If the distributorship does not utilize ride-with and key account call
programs it cannot know how its sales staff is performing. A distributor
principle and/or sales manager cannot manage the sales staff by just
reviewing results. To be effective a sales staff must have in-market
supervision. Does your distributorship utilize ride-with’s and key
account calls?
They have the confidence of the distributor principle/sales manager.
Nothing is more motivating to a sales staff than knowing they have the
confidence and backing of the distributor principle and/or sales manager.
Just picture how effective a sales staff would be if it was belittled or
ignored. Then picture the sales staff that is recognized for its efforts
and motivated to improve by its relationship with the distributor
principle and/or sales manager. Which one do you have?
They are given feedback regularly. Feedback to the sales staff
is the same as radar for an airplane. If the airplane does not use the
feedback it gets from its radar, how is it ever going to take advantage of
positive situations and avoid negative ones? It is the same with sales
staffs; feedback is needed to both take advantage of opportunities and
avoid or limit downturns. Give balanced feedback often. Do your sales
staff members receive regular written performance reviews?
They are assigned doable sales territories. When sales
territories are too large or complex, it is impossible to be effective.
The distributor principle and/or sales manager must make sure they have a
sales staff that meets the demands of the market. Too large and you are
wasting profits, too small and you are missing sales and lowering profits.
Not having a right sized sales staff costs profits. Is your sales staff
right sized for the market you service?
They are trained continuously. With the continuous introduction
of new products and paring of existing ones, the sales staff has to
understand these changes and how it will be impacted. New products
obviously need to be placed in retail accounts, and the shelf space of the
pared ones effectively filled or it will be lost to the competition. Space
management is the responsibility of the entire sales staff, not just an
individual sitting in front of a computer. The sales staff must also be
trained to provide products and services of value to the retailers. The
retailers’ successes ensure your success. Does each of your sales
meetings allocate time for skills and/or product training?
They are properly compensated. If the sales staff is not
compensated with a combination of salary, commission, and quarterly
incentives (based on the goals discussed above) they are not remunerated
effectively. The sales staff needs a salary to help stabilize the seasonal
swings in their income. They require a commission component to drive sales
to higher levels. And they need an incentive component to make
compensation a management tool; anything less than the above combination
lowers the effectiveness of the sales staff. Does your sales compensation
program assist with sales growth and the achievement of goals?
They have the latest technology. The cost of technology has
dropped dramatically in recent years. Not having the hardware and software
that eliminates unnecessary manual tasks reduces the distributorship’s
sales growth. The sales staff that can focus on selling its portfolio of
products and not manual tasks will always be more effective. Use
technology to let the sales staff focus on selling; its where the profits
are generated. Has your distributorship eliminated all the manual tasks
through automation?
They have positive attitudes. The positive attitudes of the
sales staff members emanates from the distributor principle and/or sales
manager. A negative attitude from either or both will result in a negative
attitude within the sales staff. Negative attitudes do not generate
positive sales. How positive is your attitude and that of your sales
staff?
They know what is expected of them. The members of effective
sales staffs have a detailed knowledge of their duties. They have clearly
written position descriptions, procedures, and policy manuals. There is no
guesswork or continuously asking for directions or decisions. They come to
work each morning knowing what they have to do. Does your distributorship
have position descriptions for every position?
So, what really makes one sales staff more effective than another?
It’s not the individuals or their backgrounds. It’s the distributor
principle, sales manager, management systems, organization, and the
support they provide to the sales staff that makes the difference. All
these areas are well within a distributor principle’s control.
If your sales staff is not measuring up, review how it compares to
the above common elements. Answer yes or no to the above questions,
identify those areas where improvement is needed, and make the necessary
changes. Anything less is abdication to the competition and an expectation
of lower sales and profits. It is your decision to make! |