There's a reason a sales force exists. Here are four creative ways businesses can employ their sales representatives to stimulate growth.
It is impossible to ignore how the sales force affects the trajectory of growth for your business. This frontline team is in the best position to understand current clients intimately, watch the forces at play in an industry, and spot new business opportunities. About 100 sales executives from various industries were questioned over the course of the previous year in order for us to determine the key characteristics that set true sales leaders apart from mediocre performers.
This article focuses on four noteworthy suggestions made by the executives for using the sales force to fuel expansion. Together, these ideas provide useful advice for sales teams as well as a jumping-off point for talks with CEOs and other senior managers looking to maximize their returns on sales and marketing expenditures.
View of the horizon
Industry leaders face clear hurdles when a truly disruptive technology suddenly enters the market—one that transforms markets in ways that few foresee. But there is also a great chance for advancement. An organization that provides components to high-tech manufacturers has assembled a group of "speculative market analysts" to help better recognize the introduction of disruptive technology and foresee the potential effects on the company. The team enables the business to establish itself as a forward-thinking supplier and to experience superior sales growth as rivals struggle to catch up.
All business units are represented on the full-time team, which also draws on a variety of internal and external resources. For example, the sales force offers insights into the technological initiatives of the company's clients while relentlessly seeking their feedback about its shortcomings and the efforts of competitors.
Hunt and Farm
It's simple for businesses to get into the habit of focusing primarily on expanding their consumer base. Despite the fact that the sales force is often in the best position to identify and approach potential consumers, particular salespeople may choose to sell to established clients over the awkward process of making cold calls. However, since each consumer can only purchase so much, acquiring new clients is essential for growth.
One significant auto parts distributor made an attempt to solve this issue by dividing these activities. Some of the representatives were labeled "hunters," who were solely responsible for locating new prospects, while the "farmer" representatives were responsible for maintaining current clients. The initial iteration of the strategy was successful, however as hunters were frustrated by the time and effort needed for their relatively scant wins, as well as the perception that they were second-class citizens compared with farmers.
The sales leader's strategy evolved as the turnover rate among hunter salespeople increased. He set aside one day a month as a "hunting day," when all reps would only pursue new prospects, to emphasize the value of acquiring new clients. They could mostly concentrate on their current clientele the remainder of the time. Amazingly, the company signed up as many new clients in a single day as it typically did in two months. The company's sales procedures now routinely include setting aside one day every month for prospecting.
Drive yourself not just with money
For sales representatives, the fundamental compensation structure is straightforward: a base wage ensures security, while commissions and bonuses offer incentives to work well. Most businesses put forth unending effort to achieve the best balance. However, some businesses have come to realize that financial success isn't the most important factor.
Increase sales without cutting costs
Pricing reductions are frequently chosen by businesses with stagnant or declining sales to increase demand. Yet sometimes, averages lie: a decline across a market doesn’t mean that all market segments are weakening. One logistics company learned this lesson the hard way when it empowered sales reps to lower prices to meet management’s goal of boosting volumes. Only some salespeople were able to recover the expense of the price cuts with larger volumes since the pricing recommendations were established without taking the competitive dynamics of each particular market sector into consideration. The business's overall competitive standing declined.
Top management made the decision to adjust its strategy. Each of the company's many market segments has very different characteristics. Some quickly expanded in the wake.
Conclusion
With these four creative ways, businesses can ensure to incentivise their sales force to drive growth. The sales team enables the business to position itself as a forward-thinking supplier leading to sales growth by offering insights into the technological initiatives of the clients. Setting aside a day a month as a hunting day for prospecting allows for the successful acquisition of new clients while allowing the sales force to focus on the current clients for the remainder of the time.
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