Houston… We Have a Sales & Marketing Problem!
Marketing and sales are critical tasks that need to be executed effectively if you are going to achieve and sustain the revenue you need to grow your business. It’s even more important that they are tightly combined to get the biggest bang for your buck but “Houston… we have a problem”. No matter the industry or business type, sales and marketing are not tightly aligned enough to create the most success for your business. If you don’t believe me, do a quick check for yourself.
First, go back and gather all of the ads/direct marketing you spent good money on in the past year to promote your business and put them into two stacks:
Stack #1: Advertising that promoted your business, but you have NO idea if it produced a return on your investment.
Stack #2: Direct-response advertising that promoted your business or a product that you can track a good return on your investment.
I am going to make a bet that most of you will only be able to create a Stack #1 and that is a problem. We will come back to Direct Response Marketing in a future post. For now, let’s take a look at sales. I want you to observe and listen to your sales people helping customers.
• Do you hear any probing questions?
• Do you see any upselling or cross selling?
If it’s anything like we have witnessed with our clients, the answer is No. While most sales people know their product and can answer customer questions, they don’t’ sell. They take orders and it’s costing you hundreds of thousands if not millions of dollars a year and there is no reason for it.
If your sales people were to engage the customers in a way that increased every sales by just $20, what would that mean for your business (base dollar increase on your average sale)? I would bet that additional revenue would be a game changer for you. Do the math; if you add just $20 to every sale and you have 50 sales per day your increased revenue would be $367,500 annually. If you have 100 sales per day, your increase would be $734,000. Imagine that!
So, how do we close this sales performance gap? There are three things you MUST do if you want to see an increase in sales.
Be clear that the sales people's primary contribution to your business is sales and the job requires them to take a value-added approach to selling your products or services.
You need to ensure pay is tied to their performance. Remember, compensation drives behavior so if you want them to sell, then you have to reward them to do it. Now, here is where you will run into your first obstacle because not everyone is motivated by money. If you currently have sales people who are not motivated by money or not goal achievement oriented than you need to replace them with people who are.
Sales people are not born; they are made through training and coaching. You need to develop a training program that includes:
If you want to know how to train properly then email me at firstname.lastname@example.org and ask me for a copy of our special report “How to Train Your Sales People to Become Company Consultants™. Sales training that is carefully planned and executed can make a major contribution to your bottom line. A major tobacco company developed a training program for their consumer reps and coaching for their managers that after careful evaluation increased sales by 46%. Studies have shown that trained sales people have a more positive view about their job, greater commitment, improved performance and loyal customers.