Editor’s note: Paul Kirch is CEO of ActusMR Inc., a Lewisville, Texas, business and sales consulting agency. Kirch can be reached at 214-295-6111 or at pkirch@actusmr.com.
Marketing research firms are not typically known as strong sales organizations. There are some exceptions within our industry but for the most part, research firms are known for their operational strengths. Historically, the sales process was handled by someone on the senior management staff and depending on the size of the organization, it was often the owner of the firm who managed most of the business development. There was much less competition, as the sale was usually referral- or word-of-mouth-based and the senior managers or owners were dealing with buyers at their level so it worked well.
Today, however, the scope and nature of business has changed. A company’s sales effort is often no longer managed by the people at the top and the purchase is frequently driven by the level of the decision maker at the customer’s end. It’s rarely owner selling to owner. Instead, it’s likely someone in middle management who has been given the green light to select vendors. Also, competition has increased significantly in almost all areas of our business, which means gaining market share requires a more aggressive approach than in years past.
Slow to adopt
Despite the changes in the marketplace, many companies are slow to adopt a real sales strategy. That doesn’t mean they haven’t hired salespeople but it does mean they are doing little to give them the resources they need to be successful. Hiring and managing sales staff can be challenging for someone who doesn’t understand the process or doesn’t understand what it takes to motivate them. Many managers focus on what type of laptop or smartphone to buy and less on what really matters. In part, it’s because the process is foreign to them. It’s easy to avoid the hard discussions and the planning, especially when you’re used to an operations-driven world. However, avoiding it leads to frustration and disappointing results.
I’m always shocked when people in sales or business development tell me they don’t know their sales target or goal for the year. I’ve also had conversations with sales professionals who know what their targets are but have no idea how realistic those numbers are and no plan in place to achieve them. I recently spoke to someone who accepted a job who told me that during the interview he was told what his sales goal would be but never received it writing. He brought it up a month into the job and was told they hadn’t figured out his goal yet. Not establishing realistic goals in writing is an all-too-common mistake. Setting goals adds accountability to the process, creates motivation and drives measurable success. Without it, you’re hoping your sales process works. Wait a minute, did I say process? You have no sales process without this crucial piece.
There are many steps that can be easily implemented with a little effort and planning. The following list is intended to serve as a starting point for building a successful sales system.
Company sales planning
I recommend building a sales plan that includes goals, sales targets, travel budgets, territory definitions (if it’s relevant), strategic focus, reporting structure and any other piece that is relevant to setting real expectations for the team and for each individual. One of the biggest pitfalls when it comes to hiring sales professionals is not giving them a clear idea of their sales targets and goals. This is fundamental to their success and yours.
Individual sales planning
I also recommend each person on the sales team build a sales plan that integrates the company view with their own view of how they’ll reach their targets. If they're brand new, it might not be feasible but set a timeline and have them create a document during their training period to serve as their guide to success. I’ve created a personal sales plan for every company where I’ve been a part of the sales team.
Training
No matter the experience level of the person you’re hiring, they need to learn how to position your company. How you want them to sell is as important as what they’ll be selling.
The 90-day plan
I recommend that the first 30, 60 and 90 days be looked at as a training period, where the focus is on learning. I wouldn’t wait that long to have them working with clients and focusing on sales but that first 90 days is also about learning.
Quiz and review
One of the greatest things I went through as a new hire was a process where I was quizzed on training material. Often the quizzes were in front of my peers or on conference calls with them. Even if it was just with my manager, it was extremely powerful. It forced me to learn faster and kept me accountable.
Compensation
This is a very in-depth conversation, worthy of its own article, so I’ll just touch briefly on it here. Our industry has bought into the concept of a higher base salary + commission for sales professionals. Recently, I had a conversation with Kraig Kramers, author of CEO Tools. He believes that successful salespeople should be highly compensated but not in the form of a guaranteed salary. He paid his sales staff by commission only but at a level which was truly a winning proposition for both the company and the salesperson. Kramers has an incredible record of success so it’s hard to argue with his strategy. Though it’s a powerful approach from a company view, it is probably not going to attract candidates with sales experience within our industry. However, I think it makes sense to explore a compensation program that is heavily weighted on performance and less on guaranteed base. If you can prove the system works, you just might end up with a top performer.
Marketing support
I’m often floored to see the lack of marketing support many sales professionals receive: outdated material, verbose presentation material or no material at all. If you’re sending your staff out there to talk to clients unarmed, expect to be disappointed. Sales decks, a modern Web site, strong sales messaging, complementary material and any other tool you can give them can drive success. Marketing material may not close the business but a lack of it gives the impression you’re not very progressive - a death sentence in today’s world. In addition, if your company is participating in social media dialogue, it goes a long way toward giving buyers confidence in your brand.
Sales meetings and review
Regular sales team meetings, focused on training and review of results is crucial. I am a believer in creating a team environment where learning is shared. Give them feedback and support and you’ll see significantly higher results, especially if their progress is reviewed regularly.
Sales recognition and contests
Rewarding sales success is a great way to motivate and drive further success. Create contests that are designed so that any level of sales professional can win and you can create a competitive buzz on the team. Make sure the money going into the recognition program is accounted for in overall compensation and budgeting so you won’t be impacting margin but you’ll be driving more success.
A strong foundation
Though there are other elements that go into building and managing a winning sales team or sales system, the above items serve as a strong foundation for any company looking to create a system that drives revenue, builds loyalty, addresses accountability and is truly scalable. Without it, you’re hiring and hoping. That process rarely works and it leads to frustration and disappointment.
I know the caliber of people labeled salespeople differs. Sometimes a company will hire a salesperson and be disappointed with their performance. Typically, they do one of two things. First, they keep them on board too long without explaining the true frustration. They show irritation or they ignore the salesperson altogether. It leads to both parties becoming resentful. Second, the company puts the blame on the salesperson without looking at its own system. In the latter case, if the lack of success was due to its own system, the company is likely to have this issue repeat itself with the next hire. Does this sound familiar to you?
A system of success
Hiring sales professionals can be challenging. However, with the right process planning you can create a system of success. Being successful still requires hiring someone who will fit your organization. Check references and backgrounds, visit their social networking sites, get to know them in the interview process, focus on a 90-day success plan and you’ll quickly find that acquiring the right person for your team isn’t as challenging as you believed. If you implement the steps above, you’ll build confidence as you expand your team. Though it’s likely you’ll be always known for your operations focus, you may just begin to see your company as a strong sales organization too.