| The sales function is a critical component of any | | | | week. With a closing rate of 33%, you would |
| business and most small business CEO's are not | | | | have to make 12 presentations. So to get four |
| great sales managers. So what to do? Well, you | | | | sales a week, you manage the process to ensure |
| remember that old baseball movie with the tag | | | | you make 12 presentations each week. |
| line, "Build it and they will come!" Well that applies | | | | This process is extended down the line on the |
| exceptionally well to managing your sales function. | | | | sales process. To get each presentation your |
| Build the sales activity level and the sales will | | | | sales person needs to make four calls. Ok, so |
| surely come. | | | | that is 48 sales calls per week. And each call |
| The fact that you asked the question in the first | | | | requires 2 appointment setting phone calls, or 96 |
| place is a really good sign. The first step is to | | | | phone calls per week. And so on. It is so much |
| acknowledge that the sales function needs to be | | | | easier to say to your sales people, "I want to see |
| managed. The second step is to remember that | | | | a hundred appointment setting phone calls resulting |
| to manage effectively you have to be able to | | | | in 50 sales calls each week". It is also easier to |
| measure. In the sales function that means that | | | | measure these parameters. |
| measuring dollarsis not enough, you must also | | | | Done this way managing your sales function is |
| measure activities. | | | | just the same as managing any other part of the |
| If you examine your sales function you will be | | | | business: |
| able to define several specific activities like | | | | * Tell your people what you expect them to do; |
| collecting leads, setting appointments, preparing | | | | * Measure their performance; |
| proposals, making presentations, closing the sale, | | | | * Provide them with feedback; |
| etc. Each of these activities has, over time, got a | | | | * Reward them for quality performance and |
| definitive success ratio. So you measure how | | | | discipline them when performance falls below par. |
| many times are needed to make a presentation | | | | Managing your sales function by the numbers is |
| before it turns into a sale? If you are calling on | | | | particularly important in longer cycle sales. If you |
| the right prospects and your presentation is a | | | | ensure the level of activity is where it should be, |
| good one, the closing rate could be at least 33%. | | | | sales will surely follow. |
| Let's use an example of four new sales per | | | | |