Chapter 15Chapter 15

Managing Your Time and Territory

The Value Of TimeThe Value Of Time

“Time is money”

Salespeople average 920 hours a year in front of customers

Salespeople must make every hour count to be successful

Often a question of how to allocate resources Think about how much time you have spent on your

university education____Hours in class X ____hours studying = ______

Urgent Not Urgent

I

Activities:

Crises

Pressing Problems

Deadline-driven projects

II

Activities:

Prevention, PC activities

Relationship building

Recognizing new opportunities

Planning, recreation

III

Activities:

Interruptions, some calls

Some mail, some reports

Some meetings

Proximate, pressing matters

Popular activities

IV

Activities:

Trivia, busy work

Some mail

Some phone calls

Time wasters

Pleasant activities

Important

Not

Important

The Time Management Matrix

The Self-Management ProcessThe Self-Management Process

The four stages of the self-management process include:

1) Setting goals

2) Allocating resources

3) Implementing The Time Management Strategy

4) Evaluating performance

Setting GoalsSetting Goals

The Need For Goals

Career goals and objectives should reflect personal ambitions and desires

Sales goals provide some of the means for reaching personal objectives

Guides the decision process

Increases performance

GoalsGoals

The Nature Of Goals Goals should be specific and measurable Goals should be reachable yet challenging Goals should also be time based

Types Of Sales Goals Performance Goals Goals relating to outcomes, such as revenue These types of goals should be set first Do not always need to be quantifiable

GoalsGoals Activity Goals Behavioral objectives that reflect how hard the salesperson

wants to work All are intermediate goals

Conversion Goals Measures of a salesperson’s efficiency They reflect how efficiently the salesperson uses resources,

such as time, to accomplish performance goals

Setting Sales Goals Performance and conversion goals are the basis for activity

goals

Allocating ResourcesAllocating Resources

Resources To Be Allocated Salespeople consider physical resources as investments because

resources must be managed wisely to generate the best possible return

A key resource that salespeople manage is time

Where To Allocate Resources Often a question of finding the customers or companies that are

most likely to buy and then allocating resources to maximize the opportunities they offer

Account Classification and Account Classification and Resource AllocationResource Allocation

ABC Analysis

Simplest classification scheme that ranks accounts by sales potential – know the 80/20 rule – see P. 404

Classification schemes can be used to generate call plans

Works well with industries that have regular contact with the same accounts.

Examples: Eli Lilly and SC Johnson Wax

Account Classification Account Classification

Grid Analysis

Sales call allocation grid- classifies accounts on the basis of the company’s competitive position with an account along with the accounts sales potential – Exhibit 15.4-P.405 & Exhibit 15.5-P.406

Account-opportunity- indicates how much the customer needs/able to buy the product

Strength of position- indicates how strong the salesperson and company are in selling the account

Sales Call Allocation GridSales Call Allocation Grid

The Grid and Current Customers Great tool for analyzing current customers Research has found customer share to be a better resource of

profit than market share

Market Analysis Evaluation of opportunity within segments in the overall

territory to determine allocation of time and other resources

Using The Computer For Analysis The new sales automation software products are designed to

lets salespeople determine where an account stands in the buying cycle

The Grid & Current CustomersThe Grid & Current Customers

Landmark study:– Customer share, also called account share, is

the average percentage of business received from a company’s accounts in a particular category. Similar term – share of wallet!

– Paper and Plastic Industry study – account share VERY IMPORTANT, not necessarily number of accounts!

Investing in AccountsInvesting in AccountsSales TechnologySales Technology

Can predict revenue based on purchase history

Determines where to invest time in free sample, trials, training, & displays

Time Management StrategiesTime Management Strategies

Investing In Accounts

Strategies require the use of several resources

Salespeople invest in time, free samples or trials, customer training, displays and other resources in their customers

Customers generate nearly all of a firm’s revenue

Implementing The Time Implementing The Time Management StrategyManagement Strategy

Time is a limited resource

Daily Activity Planning Salespeople must have a good understanding of their own work

habits

Guidelines

Salespeople must allocate time for prospecting and customer care

Prime selling time- time of day at which a salesperson is most likely to see a buyer

Prime selling time differs from country to country

Time ManagementTime Management

Planning Process Make a to-do list and prioritize your schedule Estimate the time required for each activity Develop an effective time schedule

Using The Computer For Planning Tickler file- file or calendar that salespeople use to

remember when to call specific accounts

Need For Flexibility To plan for the unexpected make sales calls prioritized;

adjust your schedule to fit time concerns

Time ManagementTime Management

Making More Calls Develop efficient routes and make daily plans “Out Tuesday, back Friday complex” The sales rep must make full use of all available days to get the

most out of the territory

Routing – P. 413 Method of planning sales calls in a specific order to minimize

travel time

Routine call patterns- salespeople see the customers regularly

Variable call patterns- when the salesperson must call on accounts in an irregular order

Time ManagementTime Management

Routing (Contd.)

Four types of routing plans: P. 413

Circular routing

Leapfrog routing

Straight-line routing

Cloverleaf routing

Zoning

Definition: Dividing the territory into zones, based on ease of travel and concentration of customers, to minimize travel time

Works best for compact territories or on non-regular sales calls

Time ManagementTime Management

Using Mail and Telephone Customers may appreciate a time saving call over a visit Salespeople can make numerous customer care calls

Handling Paperwork and Reports Salespeople should think positively about paperwork Salespeople should not let paperwork accumulate Routine reports should be completed daily Salespeople should set aside a block of nonselling time for

paperwork

Time ManagementTime Management

Using The Computer To Handle Paperwork and Communications

Make use of a laptop Can help international selling organizations operate smoothly

by reducing communication barriers Territory management capabilities E-mail – no errors & within 24 hours

Evaluating PerformanceEvaluating Performance Postcall Analysis Salespeople should take a moment to write down what occurred and

what needs to be done after each call

Activity Analysis Salespeople should review their activities in relations to their goals

Performance Analysis An earnings goal can be an effective check for overall performance,

and evaluate sales by product type

Productivity Analysis Identify which strategies work Conversion ratio- number of sales per calls; important measure of

effectiveness