Pop Quiz: What are the only 2 areas that create revenue in a company?
The Answer: Marketing and Sales
A recent survey showed that 87% of executives believe sales and marketing are the most pivotal activities in accelerating growth. Therefore, your growth strategy must minimize expenses and maximize revenues and focus on creating systems to bolster and measure the efficacy of your marketing and sales activities
Marketing Drives Sales Activity! The question is however – Are your sales efforts out of focus?
More often than not, underperforming sales people are likely the root cause. Dr John Sullivan, professor of Economics at San Francisco State University, found that underperforming sales people bring in at minimum 50% less revenue than top performers. Lack of focus can ruin a sales team and affect your bottom line radically.
It’s pretty simple. You don’t have sales, your cash dries up. It’s like being at the register to make a purchase, opening your wallet and it being empty. It’s simple: no sales = no cash.
Consider tuning up your Sales Management System. Tactics elements include:
? Scripting the sales approach,
? Coordinating sales activity with the right CRM software solution,
? Measuring sales activity, and;
? Tying results to a salesperson’s paycheck.
To run a successful small business, you need systems. When the right systems are in place, they will help you run your business. To create a High Performance Sales team you need a system for them to follow and be measured. Develop a script and train your sale people so they stay on message. Repetition is the mother of learning. The most successful companies make sure to repeat the same training until it becomes second nature.
Then by measuring Key Performance Indicators (KPIs) as we discussed in a recent blog, you can keep track of the vital sales signs that keeps your business alive. The old adage is true. People respect what you inspect. To make sure your sales system is healthy, have regular meeting huddles whereby you’re reviewing numbers, leads generated and converted. And, if it’s designed to help your sales people make more money, then it will be viewed as part of your company culture and be very motivating to your team.
When a sales person’s results are tied to their paycheck, it becomes a win-win for both the owner and the sales people.