53 Reasons Sales are Failing! Sales Leakage Installment #2

In my interim sales management and consulting assignments I have found 53 reasons why sales commonly falter in most companies. I will be publishing them over the coming five weeks in installments; this is the second. If you can’t wait to see the "rest of the story," take advantage of the offer at the bottom of our home page for the full list.

1. Sales territories turning over? If your salespeople are resigning you have to find out why and stop it cold. Every time a salesperson leaves a territory there are sales lost for six to nine months because the area is uncovered. Productivity in the area leaks away with barely a thought given to it. Keep a bullpen of salespeople that are ready to fill in sales territories or use a recruiter. Fill the territory as fast as possible.

2. Have you set realistic quotas? Is the sales incentive bar set too high? If you have set sales quotas too high (usually visible if less than 70% are making quota), you have to tell the quota-setting president (it usually comes from this office) that quotas are set too high and are not motivating; they are performance killers. Setting stretch quotas (10% to 15% higher than what you really need) is a prudent tactic, but goals that are 30% to 50% higher than the previous year are often unrealistic and demoralizing.

3. Salespeople making quota? If too many territories are not making quota, ask the salespeople why? I know that's a bit obvious but try it anyway.

4. Sales incentive systems too complicated? Ask 10 salespeople how they get paid and if they know how much they'll make by selling your products you're probably doing OK. If they can't explain your incentive compensation plan, you don't have one. If they have to excuse themselves to get a calculator (yes it has happened to me several times), you don’t have an incentive plan.

5. Reporting on quota achievement? If a salesperson doesn't know where they stand on quota achievement, how will they know if they are ahead or behind. Report their performance achievements monthly if not more often.

6. Monthly, quarterly and yearly quotas? If you don't have monthly, quarterly and yearly sales quotas you aren't running a sales organization with salespeople, you've got a group that will hide behind the group when sales fail to deliver. Set monthly and quarterly achievement quotas and watch sales increase within three months.

7. Fiction between sales and marketing? It's supposed to be a team, these marketing and sales folks. If there is anger and frustration between the groups, if their goals are not the same, either get them working on the same team or fire the department heads so you can form new teams.

8. Check with inquirers that are less than six months old. When a group of leads are six months old, 56% of the prospects are still in the market. Go back to them. Love them and nurture them. Bring them to life. Odds are, only 25% have heard from a salesperson.

9. Getting salespeople in front of the prospects faster than your competitors? Because 10% to 15% of the sales from inquiries are made within three months you're losing sales if the salespeople are slow about getting in front of the prospects. Get your salespeople in the door first and let them set the table for others to follow. If salespeople aren't in front if their prospects soon enough, you can lose 25% of the sales potential because you're too slow. In sales you are quick or you are dead!

10. Salespeople getting enough appointments? Teach them how to make appointments or get a specialized company to do it for you. Appointments have a phenomenal closing rate. Get appointments; go to the bank.

 
Trackbacks
  • No trackbacks exist for this entry.
Comments
  • No comments exist for this entry.
Leave a comment

Submitted comments will be subject to moderation before being displayed.

 Enter the above security code (required)

 Name (required)

 Email (will not be published) (required)

 Website

Your comment is 0 characters limited to 3000 characters.