As we work with Clients and Prospects alike, there is very often a simplistic view of increasing Sales and Profit – the “go out there and get more sales” approach. It almost sings of a brute-force-and-ignorance view of selling, apply more effort and you’ll get more sales.
The fact of the matter is that most Sales people will try put more effort into generating business, but often don’t know how to adjust their targeting or focus to produce best results.
We work with 4 growth levers when reviewing Sales and growth. To help focus your team we have found that increasing any one of the following 4 growth levers will have a dramatic positive impact on your sales:
Take “Leads” – If you increase the number of leads you gather by a modest 5%, assuming you follow up in the normal way, your sales will increase your sales by 5%. However your Sales team (and you as the Business owner) need to have a clearly defined plan with timelines and targets and actions on how to achieve this. Saying you are going to increase “Leads” is only the first step of the plan.
With your “Customers” – If you increase your conversion by 5% you will increase your number of customers by 5% and that will lead to increasing your sales by 5%. How can this be done? Why not review your “Wins” over the last 6-12months and what got them over the line or who? Perhaps one member of your Sales team has a particular technique for closing? In your next “Sales meeting” (be it in person or virtual) put “Closing/ Converting” on the agenda.
Without going through “Margin” and “Frequency of purchase” you can also draw the same conclusion. Apply the same principles, set out a plan on how to increase both “Margin” and “Frequency of Purchase”.
So, if you increase all by 5% then your sales will grow by ~21%. No matter what market you are in you can increase 1, 2, 3 or all 4 of these.
The main point of this post is that your sales team may not know or even understand what the growth levers are. So it is imperative that you analyse the numbers with them and once you have told them this you need to measure and manage their output helping them to grow the output of their territory. As the Sales team they need to put a plan in place to achieve this growth.
Focused on growth, productivity and profitability we spend all day everyday working with progressive businesses that want to get more from their sales team without increasing their fixed costs.
What’s working for you in increasing your sale teams output?
If you want to chat through some ideas or frustration you may be having with your Sales team get in touch below or give us a call.