ment. But the guys do not think any- one is running them into the ground or nailing them.” Finally, recognition goes a long way toward keeping reps happy and motivated.
“Fourth, we recognize their suc- cess. We don’t do spiffs and contests. It’s mostly a personal touch – letting everyone in sales know we appreciate them. One guy will be up one week, and a different one the next.” A pat on the back for a job well done – and a good compensation system – will keep reps on the team longer than rah-rah and a trip for the top winner while everyone else goes to a corner to grumble.
HOW TURNOVER HURTS So what does one sales expert say about DeLeon’s situation – and turn- over in general?
Some turnover is good and healthy, as, ideally, people who are not suc- ceeding will leave and the people who are succeeding will stay. But there is no doubt turnover can
be a problem – especially in sales. Some of the expert’s research showed that turnover in sales was double that of a company at large.
The expert also notes the money costs of recruiting – getting people up to speed and fully functional over 12 to 24 months, the internal manage- ment time of doing interviews, and the disruption of customer relationships. Many salespeople will say they
are leaving for better compensation, explains the expert, but research shows that compensation is usually not the reason. It is simply easier for a departing rep to say that – much like it is easier for a customer to say he is leaving for a better price, when only 15 to 20 percent of customers really buy purely on price. More often, a rep does not like his manager, isn’t getting enough training, or feels the company is not investing enough in him.
SLOWING UNWANTED TURNOVER One thing companies can do is train managers to coach and manage better.
Salespeople want career development – and the manager is the linchpin of that. Number two is to reduce the man-
ager’s span of control, so they have more time to spend, one on one, with each salesperson. Often, the manager is the only person in the company the salesperson sees, because salespeo- ple are so geographically dispersed. Another tactic is better recruiting.
Some research says that, across the world and in the U.S., sales rep is the number one position companies struggle to fill. But you cannot just grab anyone who has succeeded in the past – not all sales are the same. To succeed, salespeople have to be in the right environment. And, if they find they cannot succeed in your envi- ronment, they will leave.
SELLING TIP Nine Tips for a Sales Turnaround
1. Be hired by a great boss. It is essential to work for a supportive manager when attempting a turnaround.
2. Plan for aggressive objectives. State high goals and objectives for the turnaround so everyone on your sales team hears them. The goal can- not be just improvement on last year’s results.
3. Burn the old platform. Most underperforming sales organizations are relying on an obsolete sales paradigm and a collection of crutches. For example, crutches could be free product evaluations, extended pay- ments or invoicing terms, deep discounts, or easy-to-sell products. Find the crutches and throw them out the door. You will have to force change – and few people will like it.
4. Build a new platform. It must align with your goals and objectives as well as the reality of your market. Build a detailed, structured sales process from scratch that focuses on the value of your product to customers.
5. Prepare to measure it. Develop short- and long-term measurements to ensure you meet the final goals of the turnaround. Augment the standard measures of funnel value and quota attainment with leading or early indicators of success against your new turnaround plan.
6. Do not be afraid to make a mistake – admit it and do something else. That is one reason you want to work for a great boss.
7. Hire talent, not just experience. Get passionate about finding true sales talent. Learn to look for and judge talent wherever you can find it.
8. Be methodical but decisive. Turnarounds require many tough deci- sions – some of which involve personnel. Take your time on the staffing decisions, because mistakes here are the most costly. When you cannot learn any more, however, you have to decide.
9. Find a mentor. Not a boss or a pal, but someone who has done it. Stay in touch and stay sane.
– HENRY CANADAY SELLING POWER OCTOBER 2018 | 11 © 2018 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.
Training correlates with retention. And a lot of companies are trying to deal with attrition by thinking more about career paths for salespeople. Finally, the expert analyzed the
sources of attrition – using the human resources database – and found one company where people who do not get up to speed within 12 months are twice as likely to leave. Also, tracking attrition back to location, history, and performance, the expert found that people with certain types of back- grounds have a higher attrition rate. Turnover in sales can be a huge mo- mentum killer. However, a combina- tion of better recruiting, training, and recognition can help companies keep their best salespeople while slowing unwanted attrition to a trickle.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39
