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Is Your Sales Process Broken?

August 24th, 2009 @ 11:30 am

3 Comments

Categories: Management, Sales Process, Watercooler

Tags: Sales Process, Sales Strategy, Sales Force Management, Sales, Geoffrey James

Your sales process may be badly broken… and might not know it!  Sales processes are like filters through which you view the customer world.  You may be seeing “normal” attrition in your pipeline when, in fact, a better process might convert twice as many prospects.

How, then, do you tell if a sales process is broken? The best way is measure its performance against that of a similar group using a different process.  However, that’s not always possible.  Failing that, here are the four red flags that a sales process may be badly broken.

  • Red Flag #1: Your sales process was written by top management. In most cases, top management is not close enough to the customer to define an effective sales process.  It’s not at all unusual to find CEOs truly think that they know more about the customer than the customer themselves. RULE: The sales process must be written and updated by the sales team.

  • Red Flag #2. Your process defines what reps, not customers, do. Flawed sales processes usually consist of a list of activities that reps accomplish over the course of a sales. (E.g. “I made an initial call” or “I sent a brochure.”) RULE: Effective sales processes usually consist of customer activities. (E.g, “they agreed to meet with me” and “they shared their requirements with me”.
  • Red Flag #3. Your sales process is more than five years old. The constant influx of technology into the business world, both productive and non-productive, has wreaked vast changes on customer’s decision-making and buying habits.  RULE: A sales process that was once excellent can become obsolete and ineffective over time simply because the customer no longer wants to buy the way you’re still selling.
  • Red Flag #4. Your reps don’t really use your sales process. If reps are only giving lip service to the sales process, but following their own instincts when they’re in the field, it’s a good sign that the process out of whack with reality.  RULE: Sales reps will embrace an effective sales process without ANY management pressure, because it truly makes it easier for them to sell.

The above is based upon a conversation with the sales guru Michael Bosworth, author of the classic sales best-seller Solution Selling.

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  •  
    1

    jakedempsey

    08/24/09 | Report as spam

    Exceptions to the rules

    I am not sure I can agree. The reason is that by nature of how sales people are paid, sales people will tend to gravitate toward the sales process THEY think will be the most effective. They will often second guess even an effective sales process because they think their way is better, faster, or have the highest returns for the least amount of effort put out.

    For instance, I have dealt with sales people that engage in what I have dubbed, ?shyster selling.? This is a process whereby you tell the customer anything they want to hear to get them to sign on the line. Then you let the Customer service or management team clean up the mess. They have little interest in Solution selling, because it extends the selling process and requires more follow up. This turn and burn mentality always seems more lucrative to the sales person. (till they get fired, but they wouldn?t want to listen to that warning either.)

    Another example is the ?old dog? sales person. This is the person that can close, and makes 100 calls a day to get that one or two closes, taking no thought of the carnage that has been left behind in the process. Not interested in a new sales process, because they are still selling and happy as can be to get their few closes.

    Ahard and fast rule#4? Uhm, not sure about that, but then again, I am thinking about a situation where we are trying to fix a broken process by introducing solution selling practices.

  •  
    2

    Mark Norato

    08/26/09 | Report as spam

    RE: Is Your Sales Process Broken?

    All of these are good suggestions; however I?d like to add an
    additional thought. Having worked with many of the most
    renowned Fortune 500 and FTSE 100companies in over 23
    countries, I?ve seen so many sales processes that fail
    miserably in achieving any degree of success or consistency
    because they?re not designed from the ?practitioners
    perspective?.

    The vast majority of sales processes, methodologies, etc.
    that are in existence today, are (1) based on concepts that
    are at least 20 years old, (2) too complex and lengthy to
    produce any value (3) filled with multiple ?forms? aka ?tools?
    that waste more energy than they produce and (4) bear little
    resemblance to the world in which the sales person must
    operate.

    Fact: on any given day, there are a number of things that a
    sales rep/team must do to achieve success, however, there
    are a handful of items that will drive 80% of the results and it
    is here that reps must operate at the highest degrees of
    excellence if they are going to be successful on a consistent
    basis. Obviously these elements are slightly different
    depending on the product being sold, length of the sales
    cycle, type of customer, etc.

    If you want reps to adhere to a sales process, forget any of
    the off-the-shelf canned solutions and spend the time/effort
    necessary to construct a process that reflects the reps
    universe. Identify and understand the core drivers of
    success (the 20% that will drive 80% of the results), and
    construct a process that aligns these elements. Follow this
    approach and you?ll end-up with something that reps will
    actually embrace and use.

  •  
    3

    Chuck Overbeck

    10/05/09 | Report as spam

    RE: Is Your Sales Process Broken?

    I strongly agree with 1 and 4. In today's economy, if you
    aren't reviewing your sales process every six months (#3),
    it is probably broken. Even if the people, the building, and
    the name of the business are the same, it is not the same
    customer it was at the beginning of the year. "http://salessigmaconsulting.com/blog/?p=83">Moreover, is
    it alright to have a sales process that merely works or
    should we be looking for a better sales process.


    On red flag number 2, the process is the interaction
    between the sales representative and the customer. What
    the customer determines is the progress through the sales
    funnel. Where sales representatives usually mess up is
    moving through the sales funnel without the customer.

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