Simple Steps for Growing Your Business – Sales · Simple Steps for GrowingY our Business 1...
Transcript of Simple Steps for Growing Your Business – Sales · Simple Steps for GrowingY our Business 1...
Simple Steps for
Growing Your Business
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Growing Your Sales
Vince NetherlandExecutive Director, Polk County Economic Development Corporation
Let’s Get Started
Briefly tell us about you:
• Your name
• Your business
• What you hope to achieve through this program
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Katrina Markoff
By the End of This Workshop, You Will Learn:
• How to choose effective distribution channels
• How to evaluate your sales process• Who should be on your sales team• How to motivate your sales team• How benchmarking can boost your sales• How to implement sales and CRM tools
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Marta E. Maxwell
Expanding Your Distribution Channels
Understanding Distribution Channels
Distribution channels are how your product or service gets to the end user. Expanding distribution channels helps grow your business:• Builds brand recognition• Can decrease risk• Enables you to reach more customers• Potential to increase profits
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Jennie Dundas & Alexis Miesen
Expanding Your Distribution Channels5
Direct• Sales Team• Online• Catalog• Storefront
Indirect• Wholesaler/Distributor/Dealer• Retailer• Affiliates• Value-Added Reseller (VAR)• Consultant• Manufacturer’s Rep
Multi-Channel/Hybrid• Combination of Channels
Examples of Distribution Channels
Expanding Your Distribution Channels: Discussion
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Examples of Distribution Channels
What distribution channels are you currently using, and what have been the positive and negative aspects of using that method?
Expanding Your Distribution Channels
Channel Choices
As you assess distribution options, consider:
• What are my customers’ needs?• How could your product/service meet those needs?• Who is my ideal customer?• How can I find more of those?
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Expanding Your Distribution Channels
Customer Needs Influence Distribution
How do customers expect to buy?
• Customers require information/service: In-house sales team
• Simple buying process: Online, retail, catalog• Customers buy online:
E-commerce, resell to online retailer, affiliates
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Andrew Dunn
Expanding Your Distribution Channels
Research Distribution Channels
In addition to your customer needs, consider:
• Competitors• Geographic location• SWOT• Barriers to entry• Cost • Pricing/profit• Sales/marketing• Channel conflicts
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Expanding Your Distribution Channels
Assess Options and Prioritize
• Ease of entry• Geographic proximity • Financial goals and risks• Estimated sales volume• Competitors’ positions• Management experience• Staffing capabilities
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Expanding Your Distribution Channels: Activity
Assess Options and PrioritizeKeeping in mind the Business Needs Assessment results and the SWOT analysis you completed in the first session, fill out as much as you can on the Distribution Channel Assessment worksheet.
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Expanding Your Distribution Channels
Choosing Channel Partners
• Identify potential partners• Establish partner relationship• Set goals• Train partner• Provide sales/marketing support• Minimize partner conflicts
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Marie Seipenko
Evaluating Your Sales Process
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Evaluating Your Sales Process14
Lead Generation
Prospecting
Customer/Client Contact
Negotiating
Closing the Deal
5 Steps to Sales
Customer service is key throughout the sales process.
Evaluating Your Sales Process: Activity 15
5 Steps to Sales
Using the Sales Process Assessment worksheet, write down the methods you are currently using for your strongest and weakest steps Then include some challenges you face for each.
Evaluating Your Sales Process
Step 1: Lead Generation
Marketing can generate leads:• Advertising• Online (website, search engine optimization, pay-
per-click ads)• E-mail• Social media• Client/customer referrals• Trade shows• Direct mail• PR
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Jennie Dundas & Alexis Miesen
Evaluating Your Sales Process
Step 2: Prospecting
Prospecting reaches out to leads using:• Phone/cold calls• Email• In-person networking• Social networking • Direct mail• Trade shows• Referrals
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Evaluating Your Sales Process
Step 3: Contact
• Qualify the prospect
• Set initial meeting
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David Lomakin
Evaluating Your Sales Process
Step 4: Negotiating
• Know your goals• Determine customer needs• Be prepared • Determine deal breakers• Create win-win situation• Build relationship
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Douglas S. Cavanaugh Sr.
Evaluating Your Sales Process
Step 5: Closing
Tactics for Closing:• Understanding• Quality• Identify significance/value of product• Empathy• Know when to stop
Obstacles to Closing:• Price• Not decision-maker• Product/service not needed• Fear• Timing
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Evaluating Your Sales Process: Discussion
Step 5: Closing
Can anyone share closing challenges that you commonly come across, and/or closing tactics that have worked?
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Evaluating Your Sales Process
Customer ServiceAcquiring a new customer costs 5 times more than keeping an existing one*
• Follow up• Resolve problems• Build relationships• Use CRM tools (Plaxo, Salesforce, Zoho) to
maintain customer history• Get referrals/testimonials• Sell additional products/services• Stay in touch*Source: Gallup
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Katrina Markoff
Your Sales Team
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Your Sales Team24
Who Is Your Sales Team?
• You (Owners)• Existing Staff (performing other functions)• Your Website (e-commerce)• Dedicated sales staff• Outside consultants• Others?
Your Sales Team25
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• Set measurable goals for each step of the sales process
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• Know your ideal target customer
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• Measure outcomes constantly and adjust accordingly
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• Apply best practices techniques to sales process
Setting Sales Goals
Your Sales Team
Match Skills to the Sales Process
• What steps in the sales process are the most important for your business and why?
• What skills do your salespeople need to succeed at those steps?
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Your Sales Team
Sales Team Options
• Telemarketing• Dedicated Sales Team• Manufacturer's Reps• Retail Associates
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Motivating Your Sales Team
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Motivating Your Sales Team29
1 • Set goals – for business and salespeople
2 • Performance measurements – for sales
3 • Payment formula – keep it simple
4 • Minimum base pay – higher for new employees
5 • Rules
Creating Your Sales Compensation Plan
Motivating Your Sales Team30
Commission-Only:
§ Motivates salespeople§ Paying for results§ May be insufficient for new
salespeople§ Can alienate salespeople§ Focus on quick sale§ Price-slashing§ Best for short sales cycle
Salary-Only:
§ Can demotivate salespeople
§ Eases learning curve for new rep
§ Creates teamwork§ Invested in company goals§ Suited for long sales cycle
Commission vs. Salary
Motivating Your Sales Team
Balancing Salary and Commission
Commission can range from 20% to 85% of salary
Factors to consider:• Sales cycle• Job duties• Tenure• Experience• Industry standards
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Motivating Your Sales Team
Bonuses• Additional incentive beyond commission
• Typically paid at year-end
• Graduated levels
• Keep it simple
• Make it motivating
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Motivating Your Sales Team
Sales Incentives• Non-monetary
• Contests or compensation
• Set clear goals and rules
• Best for short-term results
• Make it meaningful
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Benchmarking Sales
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Benchmarking Sales
Why Benchmark?
Benchmarking = Comparing Performance benchmarking vs. Process benchmarking
Benchmark:1. Your past history2. The competition3. Your industry
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Benchmarking Sales36
Determine processes/ measures
Gather data Assess data Adjust process/goals
4 Steps to Benchmarking
Benchmarking Sales
Using Technology to Enhance Sales
Customer Relationship Management (CRM):• Differs from Contact Management• History of interaction• Share information• Create reports/forecasts• Spot trends• Time management• Consistent sales process
Choosing CRM Solutions: Simple and Scalable
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Helpful Resources
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Helpful Resources
Suggested Contact Management/CRM Software
• Infusionsoft CRM (www.infusionsoft.com/integrated-contact-manager)
• Intuit QuickBase (http://quickbase.intuit.com)• Oracle CRM OnDemand (www.crmondemand.com) • Plaxo (www.plaxo.com)• Sage CRM Solutions (www.sagecrmsolutions.com) • Salesforce (www.salesforce.com)• SalesNexus (www.salesnexus.com)• Zoho (www.zoho.com/crm)
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Helpful Resources
Sales Resources
Sales Organizations• Direct Selling Association (www.dsa.org)• National Association of Sales Professionals(www.nasp.com)• Professional Society for Sales and Marketing Training (www.smt.org/)• Sales and Marketing Professional Association (www.smei.org)• Sales Force Effectiveness Benchmarking Association (http://sfeba.com)• Sales Lead Management Association (www.salesleadmgmtassn.com)
Sales Compensation Software• Callidus Software (www.callidussoftware.com)• Makana Solutions (www.makanasolutions.com)• Xactly (http://www.xactlycorp.com)
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Review
• Distribution channels are how the end user gets your product or service.
• There are 5 steps to the sales process: lead generation, prospecting, customer/client contact, negotiating, closing the deal.
• There are multiple ways to form, motivate and train a sales team, depending on the needs of your business.
• Benchmarking sales will allow you to see your progress.
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Next Steps
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Next Steps
• Finish the Sales Process Assessment worksheet• Review the With Your Mentor handout for topics to discuss with
your mentor
Visit www.score.org for more information about other SCORE resources
Help Us Help You
Please answer the following questions:
1. On a scale of 0 - 10, how likely is it that you would recommend this workshop to your friends and colleagues?
2. What is the primary reason for the answer you just gave us?
3. What is the most important improvement we could make that would make you rate us closer to a 10?
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Good Luck!
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