isabel marant
In nearly all of the companies I talk with the need to improve sales results is one of the top three issues. Either sales results are lagging behind plan, or sales are being made for the wrong reasons. I know, how could there be a wrong reason to close a sale, right? There are actually many:
http://www.ask.com
Selling too low and cutting into margins
Selling with unreasonable delivery times driving up production costs.
Selling using rebates or freebies to get the sale
Those are just a few of the reasons I can consider of.
Why then do companies allow these sales to happen if they arent a win / win for the company and the client?
The main reason I see is the sales force isnt performing as well as it should and the company has few options. Bad sales are better than no sales, and at least they cover overhead. While that may be a very good argument for the short term, you might be setting expectations with your customers which might be hard to break.
The real answer is increase overall sales effectiveness to have options to take or leave business that may not be desirable.
To do that you need to understand why the sales organization isnt performing as needed. Its easy to blame the sales reps, and many companies cycle through numerous people and get the same poor results. In my book, Bottom Line Focus I used the term everybody sells, and that concept must be understood and accepted to solve the problem.
The organization must have a clearly defined and documented strategy that everyone understands and buys into. If your sales force doesnt get it, or doesnt own it, they will invariably let it show to the prospect.
The organizational culture must visibly support sales. All functions have to be aligned to focus on delivering customer value.
The organizational infrastructure must support the sales goals and be aligned to be effective in delivering the item or service.
The sales rep must have the knowledge to sell the solution or service. Have they been trained on the benefits to the customer of buying your merchandise or service of do they simply sell features and price? Do they understand the axiom find the problem and sell the solution?
The sales persons attitude must be positive toward the company, the product, the and the marketplace. Are they a reflection of the organizational culture? (great or bad)
The sales person must have the skills to relate to the prospect in an articulate manner that fits the market. Can they deliver the message clearly why your solution or service is the best value for your prospects money?
Sales effectiveness is an organizational responsibility. Management must develop a item that meets the customers needs at a price that fits the marketplace and allows a fair profit to the company. Manufacturing must provide a quality item and deliver it undamaged and on-time. Administrative support must make the buying process seamless and hassle free. Customer service must treat every customer problem as an opportunity to show the company cares about the business.
Only when you understand the term everybody sells can you develop better sales results.