Posted by Tom Rothrock on Fri, Apr 30, 2010 @ 03:35 PM
Last year, you made a proposal to your senior management to invest in a software application that you believed would provide your sales team the horsepower to take them to the next level. Your proposal was unanimously and enthusiastically approved and you were told to "run with it."
Working with your IT and sales teams, you proceeded on implementation of the application. There were a few bumps in the road but your team appeared to embrace the application at your on-line kick-off session. A few of them were quiet but were the ones who were typically reserved.
After several months, the application's usage statistics looked promising but there were some laggards. You drilled down on the stats and found it was the ones who were quiet during your kick-off presentation. You then followed up with each and identified their obstacles. Some had clear cases of "application anxiety" while others were "reluctant adopters" who got by with the absolute minimum by just "going through the motions" by logging on sporadically and infrequently.
You had your IT people follow up with the "application anxiety" crowd to address their issues, which were largely technical. You got together with the "reluctant adopters," explaining how their consistent usage of the app would make them more productive and, at the end of the day, they'd have more money in their pocket. You also emphasized how the application wasn't a "make-work" project or a management control mechanism to "spy on them." You'd heard those stories through the grapevine.
Because of the laggards, your ramp-up and full implementation of the application was delayed by a full quarter and the project exceeded budget, which raised some eyebrows in your management ranks.
Does any of this sound familiar? If so, here are some steps to take early on to avoid the laggards from dragging down your implementation:
- Establish and publish enterprise-wide acceptable usage standards and eliminate any "loopholes" which enable non-participation.
- Embed application usage within your sales team's job description along with appropriate notification/acknowledgement. This sends a clear message of "What's expected will be inspected."
- Include usage as a measurable performance expectation in the performance appraisals including inclusion in all of your formal written policies.
- Engage users consistently during the early phase of your implementation and listen carefully for any negativity or poor attitudes. If encountered, isolate and address them immediately. If you don't, your project goals will be stalled and delayed.
- Identify and circulate user "success stories" frequently throughout the initial implementation; the more the better.
- Draft a sales automation policy defining the standards and expectations for application usage and stress how that usage is mandatory, not optional.
Remember it's all about EXPECTATIONS and ACCOUNTABILITY. As a manager, it's up to you to clearly communicate consequences for lapses in adapting to any new application.
Photo credit: Pink Chick
Posted by Jim Kasper on Wed, Apr 21, 2010 @ 01:58 PM
New Metric Belongs On Your Sales Management Dashboard
There are four primary, key metrics that belong on YOUR company's sales management dashboard:
- Actual sales vs. forecast
- Gross margin vs. forecast
- New business dollars (includes new accounts)
- Sales Efficiency Index
The first three are no doubt on your dashboard already. So, what is the Sales Efficiency Index and why is it so important?
What Is The Sales Efficiency Index (SEI)?
To begin, let's examine the fundamental meanings of "efficiency."
1. Competency in performance (sales performance)
2. Accomplishment of performance vs. the cost of accomplishment
3. Ratio of output vs. input
Quite simply put, YOUR SEI is the output (measured in gross profit) of your sales team, collective or individual, compared against the total input (measured in dollar cost) of your sales team, collective or individual.
Why Is SEI So Important That It NEEDS To Be On YOUR Sales Management Dashboard?
- It is the one and only measurement of true sales efficiency and return on investment in your sales team, collective or individual.
- It is the only metric that exhibits cost of the sales team, collective or individual, vs. what that cost produced in profit.
- SEI is the only impartial, unbiased, true measure of YOUR return on investment in your sales team/individual.
- It is the best comparative measurement in stack rankings (regional teams and individuals).
- SEI is the only true measurement of how effectively YOUR sales managers are utilizing YOUR investment in YOUR sales team. It is an excellent measure of "management prowess."
Your SEI is purely quantitative. It is much more meaningful than most metrics because it does take into consideration sales production (in the form of gross profit) and what YOU have invested to get that production.
How Often Should I Calculate MY SEI?
The answer to that question is determined by the other metrics displayed on your sales dashboard. "Best practices" dictate YOUR SEI should be calculated monthly, quarterly, and annually.
Besides Sales Efficiency, What Other Uses Are There For MY SEI?
Since this is a true measure of return on investment, YOUR SEI is very useful for:
- Compensation plan modeling
- Account and territory alignment
- Management evaluation
- Fringe benefit changes and their impact on ROI
- Gross margin analysis
How Interested Is Your TOP Management In Seeing Their Return on Investment In YOUR Sales Team?
Blog format is not conducive to displaying the electronic calculation for YOUR Sales Efficiency Index. If you would like to have a free, no-obligation calculation and explanation, please click here.
Photo Credit: Brianapa's Photostream
Posted by Jim Kasper on Thu, Apr 01, 2010 @ 09:00 PM
Solving crimes and selling have something in common?
"Absolutely," answered Rick Huffman. "In fact, I bet there is more in common with crime investigation best practices and selling than you would ever think," he continued. Mr. Huffman speaks from experience because not only is he a retired police detective and insurance private investigator, but his wife, Linda, is the owner of a top producing real estate business in Florida.
Both selling and solving crimes are process oriented.
Solving crimes Selling
1. Identify potential suspects Same thing
2. Find out everything you can Same thing
about them - "use whatever
source of information is available"
3. Profile the suspects Same thing
4. Develop "case specific questions" Same thing
Detectives attend a "what, when,
where, how, why school" in their
detective training!
5. Conduct suspect interview We qualify suspects
A. Technique varies by Us too
suspect's behavioral style
B. Establish rapport We do that
C. Pace your questions to the We do that, too
time you have available
D. Plan your questioning to We'd better do this
test the veracity of your suspect
E. Always end on a positive note Absolutely
6. Building the case
A. Establish motivation We want to learn &
(obvious and hidden) present what's in it
for them
B. Determine if the suspect Need/Want/$
was/is capable of doing the
the crime
C. Tie the consequences of the Tie their benefits to
crime to what they have our solution, both
at stake...their freedom business and career
Adaptability and Urgency
Mr. Huffman goes on to say that successful crime investigation depends upon two key factors: adaptability and urgency. That is so true about top producing salespeople.
Is your sales process conducive to you becoming a SUCCESSFUL SALES DETECTIVE?
Photo credit: Jon Hicks