Identifying sales barriers….

Manufacturers’ representatives can achieve double-digit growth with low risk and no additional sales/marketing costs if they identify and overcome what the Industrial Performance Group, Northfield, Illinois, calls the five common barriers to peak sales performance.

According to that organization, “Every year companies engage in the time-consuming ritual of setting sales goals and profit expectations. When they miss these targets, many revert to the traditional approaches to improving sales performance, such as changing the compensation plan, investing in the latest technology or bringing in a motivational speaker. Others blame the economy, the competition or even their customers for these shortcomings.

“To better understand this issue, the Industrial Performance Group took an in-depth look at sales performance by researching how salespeople spend their time. After all, salespeople are the only asset companies have that can go out and generate more revenue. How well was this asset being utilized?

“To find the answer, we conducted an online survey of more than 1,100 salespeople from a variety of industries.

“The results of that survey identified those barriers to peak sales performance as well as critical weaknesses with how most companies measure sales performance.”

Inefficient, outdated work processes….

“All work in the sales channel is completed through work processes. A work process is a set of tasks that produces an outcome: an order, pick slip, delivery schedule, invoice, etc. But over time, work processes tend to become inefficient and outdated. While conditions change, the process stays the same. Inefficient work processes result in problems, mistakes and unnecessary work.”

To counter this problem, Industrial Performance Groups urges that inefficient processes be identified with the goal of “getting the people close to these processes involved in developing and implementing a solution.”

Lack of focus….

Unfortunately salespeople are not as focused as they should be on acquiring new customers or understanding the needs of customers and prospects, developing solutions and presenting those solutions to decision makers.

A joint effort should be made to “reinforce with your salespeople the importance of prospecting, no matter how successful they have become, and make sure your salespeople understand the importance of increasing sales volume from existing customers.”

To cold call, or not….

An interesting dialog between two reps on the subject of cold calling was overheard during a break at one of MANA’s Local Chapter meetings. One rep was firm in his belief that cold calling remained an integral part of his selling effort. “I love it. It recharges my batteries, and even if I don’t make a sale, what I learn from the contact far outweighs any negative feelings I get from not getting an order.” He added that while he regularly returns to the practice of cold calling, it’s done only when there’s a lull in other sales activity.

The other rep was quick to discount any perceived benefits derived from cold calls. “I can’t remember the last time I worked that way. I learned long ago that the waste, in terms of time and effort, is far beyond the benefits of the few sales that have developed.”

But, just as the first rep, the second one practices this sales technique when time allows. “In lieu of making cold calls, I’ve made it a habit to ask for referrals from my existing customers. I know I’ve done a good job for them, and they’ve shown a willingness to provide a recommendation of my services. At any given time I’ve got plenty of specific names and titles that I can contact. And once I say to them that ‘Bill so-and-so suggested I give you a call,’ I find that a lot of the traditional barriers come down.”

While each rep is firm in following the practice that suits him best, they both agreed that whatever prospecting method best suits the talents of the individual is the best method to follow.

Too little or too much information….

Industrial Performance Group asks the question, “Has more communication technology made it easier for salespeople to focus on their primary function: acquiring and keeping customers?”

To overcome this barrier:

• “Identify the information your salespeople have difficulty accessing and determine why.”
• “Determine whether the information in e-mail and text messages helps salespeople increase sales volume, or if it consumes valuable time.”

Outdated skills….

“Today’s customers are more price-sensitive than ever before…. In this price-focused environment, salespeople must justify — in terms of dollars and cents — the economic value customers will derive from their product offer. If salespeople lack this ability, they leave the customer no choice but to view their product as just another commodity.”

The consulting group urges that salespeople must:

• “Define the value proposition you are delivering to customers.
• “Identify and quantify — in terms of dollars and cents — the benefit customers derive from this value proposition.
• “Use this information to overcome downward price pressure.”

Inability to execute….

“The fifth barrier to peak sales performance is perhaps the biggest of them all — an organization’s inability to turn great intentions into day-to-day action.

“At the heart of this inability to execute lies a way of thinking called ‘swinging for the fences.’ As humans, we have an instinctive disdain for slow, deliberate solutions that produce results somewhere in the future. We’re biased toward quick fixes, and at many companies, this mentality is further fueled by intense pressure for quarterly results.”

• To overcome this barrier, the Industrial Performance Group suggests:
• “Stop looking for the golden bat that will give you the elusive home run.
• “Identify which of these five common barriers to peak sales performance are holding back your salespeople.
• “Focus on the little thing that you can do, on a day-to-day basis, to free up your salespeople’s time.”

“Profitable double-digit growth is available to companies that diligently work to overcome these common barriers. A sales force with the right skills, empowered by management to achieve peak performance, can become an even greater asset to your company. To grow your top line and boost your bottom line, you need to help your salespeople get past these common barriers to become peak performers.”

For more information on The Industrial Performance Group visit www.indusperfgrp.com.