The part of sales management I struggle with is tracking and getting control of what we should be doing. For all intents and purposes, forecasting is non-existent, finger in the wind, seat of the pants, coin flip. 5 proposals jumped ahead of ones that should have been done. I also hear that it can be a real bear to get everyone to use a CRM system. How do we start?
Thoughts of the Day: Knowing what is expected in sales management can lead to predictable, profitable growth. Figure out how much of the year’s sales will likely roll in and how much needs to be created. Tracking proposal priority is part of managing sales activity. A good CRM system can be worth its weight in gold but needs a strong leader to get it into use.
Instill order in sales management
The goal of any well-run company is to have predictable, profitable growth over a long period of time – years, not months. Revenue that is up some years, down others, can destroy profits as the company always struggles to get ahead of the next change in direction.
Make the goal big enough to stay ahead of inflation. Resist the temptation to take on too much growth at any one time. 10% – 20% per year is a good growth rate for most companies. Over time, at that rate, most businesses can double revenue and triple profit.
Most companies experience rollover from one year to the next and repeat orders from existing clients that won’t take a lot of effort to bring on. Figure out how much of the annual goal for sales management will come easily, and how much has to be created from scratch.
Customer purchase through product delivery
Set separate goals for each category:
- Roll over from last year
- existing clients likely to re-order with little or no prompting
- Pursue existing and new clients with potential
- Where to find new clients
Break sales management down into categories. Put effort into creating new sales for the upcoming year.
Keeping track of sales activity is essential. A spreadsheet to manage proposals can be invaluable. List all active prospects, using columns and dates to indicate what stage they are at information gathering, confirming needs, preparing a proposal, negotiating, closing, and implementing.
Increased sales drive revenue
Put someone in charge of managing the activity in the proposal spreadsheet. That person needs to watch for a steady flow of prospects at every stage. Watch prospects move steadily from one stage to the next. Refer issues to management to help get it moving. The person watching the proposal spreadsheet can also predict the resources needed because they can see how the volume of activity flows through the sales management pipeline. With practice, the spreadsheet can turn into a tool to predict future sales, based on historical trends.
In addition, provide valuable sales activity information with a CRM system. Start simple. Assign someone responsible for picking implementing your new CRM system. Get things done. Ensure that person has the time, experience in sales, management skills, and clout.
Plan on CRM taking 6 months to a year to achieve full implementation. Learn to do the basics first. Start with scheduling activities and using the system to log all contacts, which can be the most immediately gratifying parts. Users find they can look up history and see an increasingly full calendar going forward. Rely on the system for contact information. Boost engagement. See the value.
Give the leader of the project authority to compel people to comply. Make sure your project leader has demonstrated the ability to lead and train. CRM is not the project for a rookie to cut their chops on – it’s too important to the future of the company.
Looking for a good book? Cracking the Sales Management Code: The Secrets to Measuring and Managing Sales Performance, by Jason Jordan and Michelle Vazzana.
