Improving Sales Force Performance

Reps who attended Keystone 2005 in Louisville, Kentucky

Reps who attended Keystone 2005 in Louisville, Kentucky, got a sampling of what Bob Nadeau, Industrial Performance Group, has to offer when he made a presentation entitled “Selling Value.” Now Nadeau has come out with information contained in a study his organization has done that reflects on the challenges that manufacturers face with getting the most out of their sales forces. Inherent in what he has to report is the fact that much of what the sales force faces isn’t always directly related to the face-to-face contact with the customer. Instead, much time and effort is wasted on other efforts that call into question exactly what it is that a salesman should be required to do for the manufacturer.

Challenges in 2006

In a report from the Northbrook, Illinois-based Industrial Performance Group, 2006 could be a challenging year. Many leading economists are projecting a slowing economy. The Federal Reserve continues to raise interest rates as it zealously fights any hint of inflation. Meanwhile, the world economy won’t wait around for us to pick up the pace. Growing economies around the world are pushing up the price of raw materials and energy. And no one needs to remind you that foreign competition is as strong as ever.

The Good News

If you’re willing to reconsider some old assumptions, you can achieve double-digit growth without adding salespeople or increasing your sales and marketing budget. The secret lies in your sales force. Think about it — your salespeople are the only asset you have that can go out and generate more revenue. It’s up to you to get the most out of this valuable asset. Everyone wants their sales force to be more productive. But if your salespeople are already giving 100 percent, how can you expect more? The truth is that your sales force can do more, and they won’t even have to work longer or harder. The key is to better utilize the salespeople you currently have.

Online Survey Findings

For the past several months, the Industrial Performance Group has been conducting an online survey of salespeople from various industries. The goal of this survey has been to find out what consumes a salesperson’s time. They’re finding that salespeople work long hours — no surprise there. But a lot of their time is consumed by activities that have nothing to do with sales. In fact, on average, salespeople spend less than half their time selling. They spend most of their time traveling or performing various administrative tasks.

Fixing Problems and Mistakes

The most troubling finding is that salespeople spend an average of 22 percent of their time — nearly one-fourth — dealing with problems and mistakes, looking for information and expediting orders. This has become an accepted way of life for many salespeople. It’s driven by a philosophy of doing “whatever it takes” to keep the customer happy. But how happy can customers really be when their key contact spends 22 percent of his or her time dealing with problems and mistakes, looking for information and expediting orders?

The Missing Measurement

At the end of the business year, many manufacturers confront that uncomfortable gap between their sales goals and what was actually accomplished — despite the heroic efforts of their salespeople. Many are quick to blame the economy, their competition or even their customers for this shortcoming. However, in reality, unrealized sales goals are more than likely the result of how a sales force was utilized during the year. Were they selling or fighting fires?

Differentiating Salespeople From Order Takers

When three manufacturers got together to discuss some of their experiences with outsourced sales professionals, the subject of termination came up before too long. To a person, each manufacturer emphasized that after they had expended the time, energy and effort to team up with a rep, they were reluctant to make a change — however, sometimes that was the only alternative when things didn’t go as well as they had planned.

Enjoying the Switch to New Ownership

One manufacturer that has recently experienced a transfer of ownership with two of his agencies reported that it was not an especially onerous experience “owing mostly to the foresight and planning of the reps involved.” In both cases he reported that the agencies’ previous ownership kept him in the informational loop from the very beginning of the planning process.

The Benefits of In-the-Field Training

A manufacturer paid close attention to the members of his rep council when the subject of training came up. In a uniform voice, the five reps that made up his council let him know exactly what kind of training they were looking for. “Their message to me,” he explained, “was we already know how to sell. That’s how we’ve been making a living for years. What we do need is product training, especially for my company’s products, since we’ve achieved a well-earned reputation for putting innovative products out in the field.