Here are a few thoughts for growing your sales organization in these challenging times.
First, stop accepting excuses for lack of performance… even if they have a basis in truth. It’s always easier for someone to blame the economy, the competition, the lousy sales leads, or even their own company than it is to accept responsibility. The fact is that successful people find a way to succeed regardless of the circumstances. Hardly anybody actually likes to prospect, but hungry successful salespeople who need to generate revenue will become prospecting animals. Are your salespeople making enough calls to generate the business you need? Are they doing everything possible to succeed?
In better times, many salespeople focused on telling prospects about the benefits and advantages of their company’s products or services. They sent lots of proposals and followed up consistently. Business was good. But as soon as the economy slowed, this approach stopped working. The reaction was often to cut price and to add extra value (often by throwing in extra functionality) in an attempt to close deals. Margins eroded and the sales pipeline slowed to a trickle. The very salespeople who seemed like Supermen in the good times now act like kryptonite is in their office.
There are two basic questions that need to be addressed in order to turn around a languishing sales organization.
First: do you have the right people?
Many successful “salespeople” really were more like account managers who farmed their existing client base very effectively. These “farmers” are patient and will say, “Wait until the economy turns around”, or “Nobody is buying right now”. Salespeople who are excellent account managers are not necessarily willing and able to prospect for new business (i.e. become hunters). Find those who have both a strong desire for success and a commitment to do whatever it takes, then get rid of the rest!
The second question is: do your people have the abilities and skills to compete in a tough selling environment?
Many sales organizations, especially those selling technology during the boom times, failed to develop the selling skills of their sales team. Some salespeople were functioning too much as order takers and simply didn’t need to prospect in order to meet their targets. Marketing generated an abundance of leads so the biggest challenge salespeople faced was simply following-up on what was handed to them. Everything was wonderful until the economy took a turn for the worse. Many formerly successful salespeople simply don’t have the skills to compete in this new economy, or they aren’t willing to do what it will take to be successful.
In order to answer the above two questions, consider evaluating your existing organization using some sort of objective assessment methodology. Like any good change process, establishing the current condition is essential in determining an action plan for future change. Knowing strengths and weaknesses of the sales team allows for an action plan to be developed. It is entirely possible that some on the team simply will not be effective in this new economy, so making personnel changes may be the first step. If training is needed, it should be targeted to address those issues that will have the greatest return on investment. For instance, if salespeople are too easily cutting price, then some intensive focus on a good budget step would be prudent. If they send out lots of proposals but don’t close enough, developing their questioning skills and closing strategies would be appropriate.
Additionally, a growing organization should look to systematize the selling process. Determine your best sales practices and then make sure the whole organization consistently follows those practices. What are the best ways to find new leads? How do they get qualified quickly? How are budgets determined? When and how will the decision be made? Answer all these questions BEFORE you spend a fortune on software. Contact management, sales automation, and customer relationship management (CRM) software is abundant and readily available for virtually any size sales organization. Unfortunately, software alone will not fix a weak sales process or a weak sales team.
Lastly, take the time and energy to hire salespeople who not only can sell, but WILL SELL for your company. When looking at those impressive resumes be sure to ask lots of questions about how much prospecting the salesperson did in the past. Many top salespeople inherited accounts and grew an existing base. If that’s what you’re offering them, then they may be a good fit, but don’t expect this former superstar to necessarily cold call and prospect consistently for new business. Again, use good evaluation tools to screen for those attributes that will insure success in your organization. Never hire based strictly upon your “gut”.
Put it all together and you’ll probably find that selling in a down economy really isn’t much different than selling in a good economy. Hire the right people, provide them with great training and tools, and don’t accept excuses. So when the economy picks up again don’t forget the fundamentals. Winners succeed because they are prepared more than others and are committed to be the best. Good Selling!
-- by Kevin Hallenbeck
