 Master
the Science of Sales
By
Heather Peeler
Senior Consultant, Community Wealth Ventures
When asked
about what it takes to be successful at sales, undoubtedly many will
emphasize the salesperson’s character traits such as charisma, charm and
outgoing personality. While these qualities are important in
establishing solid relationships with prospective customers, they are
not enough to sustain an effective sales program.
In fact, studies of the most effective sales programs reveal structured,
analysis-driven processes that are built around deep knowledge of
customers and prospective customers. Contrary to popular belief, an
effective sales program is more science than art.
Maximize the Pipeline
Most successful salespeople realize that the source of their success is
rooted in an understanding of their prospective customers' needs and
desires. Equally important is the tailoring of sales activities to the
prospect so that she can make an informed purchase decision. Keeping
track of this information on an individual level is generally not a
challenge. However, keeping track when you have dozens of prospects,
each with different needs, can be an information management nightmare.
That’s why even novice salespeople use spreadsheets and other tools to
track their sales pipeline, or listing of sales prospects.
Whether the pipeline is managed using index cards or sophisticated
software, few people maximize the potential of pipeline management.
Powerful pipeline management means taking a more scientific approach to
sales by analyzing key sales performance metrics such as the amount of
time it takes to close a prospect or tracking which sales activities
yield the best results. Two strategies to become more scientific –
segmentation and tailored action – are discussed below.
Pipeline Segmentation
Grouping sales prospects by common characteristics can deepen your
understanding of your customers. Common categories include:
* Relationship to customer: new, renewing, returning
* Stage in the sales process: information gathering,
proposal
development, contract negotiations
* Potential value of the customer: one-time purchase,
multiple
purchases, multi-year contract
* Type of product: training vs. consulting; ballroom
rental vs.
conference room rental, etc.
Before they commit to purchasing your products, different prospects need
different information and support from your sales team. For example, a
new customer may need to develop a level of familiarity and comfort with
your product before committing to a purchase. Repeat customers might be
more responsive to a sales incentive or activities that reinforce their
trust and original decision to purchase your product. Some companies go
so far as to have different sales teams for each customer segment.
Segmenting your sales prospects allows you to focus your time and
resources on the activities that will yield the best results.
Targeted Actions
Today’s business environment is focused on customization and one-on-one
service. Thus, treating all sales prospects with a generic sales
strategy is a recipe for lackluster sales performance. Stellar
salespeople have learned how to use their pipelines to create customized
sales plans for each of their prospects or prospect segments.
Targeting your actions has another benefit that can boost sales
productivity: building accountability into the sales process. The best
pipelines track recent activity in addition to next steps and the person
responsible on your team for completing the task. That way, follow-up
doesn’t slip through the cracks and prospects get the attention they
deserve.
Getting Started
Making small adjustments in how you manage your pipeline can lead to
more sales, more revenue, and greater success for your venture. And, for
many social enterprises, ideas for how to more effectively manage the
sales process can be found in the nonprofit’s development department.
Development peers who focus on individual donors are often masters at
tracking, organizing, and using data about their donor base to guide
their fundraising efforts.
Nonetheless, there are three essential first steps that every sales and
marketing professional should consider:
1. Set goals and benchmarks
Having concrete sales goals will help you stay focused on those
activities and actions that will lead to success. Common sales metrics
include: annual, quarterly, and monthly revenue goals; the number of
prospects in the pipeline; and length of the sales cycle. Select two to
three metrics that are meaningful to your business and that will help
you determine whether you are on track.
2. Dedicate time for analysis and reflection
Your pipeline will offer valuable insights, but only if you set aside
time for analysis and reflection. Looking at your pipeline on a regular
basis to identify trends and best practices will prepare you to look at
your sales in a more scientific way.
3. Track information
Whether you use software such as a customer relationship management
(CRM) program, an Excel spreadsheet, or index cards, tracking the
information you are generating about your prospects and your pipeline is
essential. Without a structured process for tracking software to help
you manage your sales and customer information? and managing
information, your sales efforts will fall short of their potential. (Not
sure whether to invest in software to help you manage your sales and
customer information?
Click here.)
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