If you are ever frustrated with inconsistent sales results, lack of prospecting, poor attitudes and work habits, thin pipelines and other issues, look no further. Here is a list of the things you can do to minimize those negative issues on your team in the future. None of these are quick fixes, but if you take these actions and stick to them over time you will have a sales team that will have you sleeping well at night.
Define your goals, beginning with a specific revenue target. Write the number down and initiate a regular process with your leadership team. This process involves working backward from your revenue goal to understand the necessary setup for achieving it. Aim to do this quarterly for optimal results.
Assess your team’s current standing. Start with basics. Count your sales reps. Determine their average monthly sales over the past year. What’s the monthly average for your top performers? What’s the current sales quota?
With this information, calculate the number of reps needed at the current average to hit your revenue target. Understand the potential revenue boost if all your reps meet or exceed the quota. The challenge now lies in elevating your current or future reps to reach these quotas, and potentially increasing your team size to meet your revenue goals. It seems straightforward, but this process can span years, depending on your specific circumstances. It’s crucial to maintain discipline, focusing on these fundamental calculations without being tempted by short-term solutions.
Develop a profile for your ideal sales representatives. What characteristics do your top performers share? Begin by analyzing the traits of your best reps, then incorporate personality and psychological assessments to identify success patterns. This approach not only spotlights traits common among top performers but also the less favorable traits in underperformers. Utilizing this information, you can craft a hiring strategy that targets the right candidates, increasing the likelihood of bringing on board individuals who can meet and exceed quotas.
Commission and compensation plans often become overly complex. Over time, companies tend to complicate a straightforward compensation plan by adding features meant to drive specific behaviors. For instance, a business owner, frustrated by insufficient prospecting efforts, introduced a prospecting bonus. The result? Sales reps filled out prospecting forms to earn the bonus, but this didn’t necessarily lead to increased sales. The key to influencing desired behaviors lies in hiring the right people and providing effective training and strong leadership, rather than continually complicating the compensation plan.
So, what does an effective compensation plan look like? The most successful model I’ve seen includes a salary that reflects the rep’s experience, coupled with a commission based on a percentage of the gross profit they generate for the company. The combined salary and commission should align with the on-target earnings budgeted for that position when quotas are met. For performance exceeding the quota, consider offering a higher commission rate to incentivize overachievement. This approach rewards your top performers exceptionally, treating them like the assets they truly are.
Focus on training. Training is often a weak spot for small to midsize companies, characterized by inconsistent programs that focus more on product knowledge than on sales skills. To truly build a robust sales force, you need a well-structured, consistent training program. The most effective method is to engage a professional third party to conduct regular training sessions, ideally for two hours every week. This iterative approach ensures continuous improvement in sales techniques and reinforces the importance of sales skills. It also sends a powerful message to the sales team about their value to the organization. Additionally, it’s highly beneficial when company leaders participate in some of these training sessions alongside the team, demonstrating commitment and support for the sales function.
Maintenance and improvements are crucial once your sales system is operational. It’s essential for leadership to remain actively involved, consistently focusing on integrating new hires, conducting ongoing training and reinforcing successful models. This steadfast commitment is key to reaching your objectives.
By diligently following these steps, you might find yourself pleasantly surprised at the rapid, positive changes in your sales outcomes. With the right sales representatives on board and a well-structured plan in place, achieving your targeted goals becomes a more attainable reality.
John Sterling is the Amazon bestselling author of “Sales for Noobs” and CEO of NOOB School, an online resource for new salespeople. Previously, John helped build and sell Datastream for over $200 million. He has trained and hired hundreds of sales reps globally. Subscribe to his YouTube channel for new sales content every week. https://noobschool.org
