Hiring salespeople is a time consuming and costly exercise, so it’s important to get it right and keep it right. Unfortunately, not all salespeople are equal and managing poor performers is a common (and stressful) problem for many businesses, no matter what their size.
There are many reasons why sales people stop selling and why some just don't work out and it’s usually not the ones that they are telling you. Personally, I think the main reason salespeople fail to perform are due to lack of direction and little to no accountability. Salespeople, no matter how professional or how experienced need direction and need and expect accountability.
Salespeople can be your best asset or your worst asset depending on how you manage them. If you have a salesperson that is not performing, here are some reasons that might shed some light on the situation:
All care, no responsibility.
This is where you as the Manager or Business Owner don’t take responsibility for the success of your sales person and you simply dump everything into your salesperson's lap, hoping they will miraculously turn things around. You provide no leadership or support to the salesperson – just set and forget which is an extremely risky thing to do. I see this a lot in smaller businesses where the owner has little to no interest in sales or salespeople. If you employ salespeople, you need to be ask questions, be interested and be involved.
The Business Saviour.
Many business owners secretly hope that a salesperson will be the answer to their prayers; the saviour who will quickly start generating sales and increasing profits. While a good salesperson can make an enormous difference, it won’t happen overnight. You still need to invest considerable time and resources to market your company and to manage and develop your salespeople.
Not communicating expectations.
Salespeople need direction and they need to know exactly what is expected of them. Unfortunately, many Owners and Managers fail to communicate expectations clearly to their salespeople. When that happens, it's common for salespeople to think they're doing fine, whilst the Manager/Owner sees them as under performing and starts to get very frustrated. Communicate expectations (also known as KPI’s, key performance indicators) in writing from day one. Setting KPI’s on sales activities, customer meetings & networking events in addition to sales revenue, will ensure that sales remain consistent month to month.
Lack of Accountability.
When you are reliant on your salespeople to generate sales, why would you risk your business by not knowing how much and when the sales will come in? Holding a weekly team meeting to discuss the sales pipeline and sales activity is a simple way to introduce accountability. If your salespeople aren’t making sales at least your aware of it and can do something about it. Don’t wait until it’s too late. At the beginning of each month, have a performance review with each individual salesperson and discuss their performance for the previous month against expectations. If you have poorly performing salespeople, ask them to achieve specific revenue targets or tasks within a specified time frame. It will help you know whether to keep them or get rid of them.
Remember, if no-one cares what the salesperson is doing or whether they are making sales, why would they?
Hiring the wrong type of salesperson
There are two types of salespeople: those who can win new business (Business Development Manager or Hunter) and those who grow existing accounts (Account Manager or Farmer).
Most businesses want to employ salespeople who can generate new business, because they're already good at developing relationships with current clients. They want the type of salesperson who can make cold calls, build new relationships, and close a deal with a new client. This is much harder to do, requires different skills and has higher salary expectations.Be clear on what you want your salespeople to do so you can match the skills, experience and salary accordingly. If your salesperson isn’t selling, ask them what they have done in the last month to add to the sales pipeline and generate sales. This is where the majority of mistakes are made with salespeople – hiring an account manager find and close new business sales. They rarely have the desire or the skills to do so.
How much is enough?
Coming up with a fair and equitable commission scheme that works for everyone can be challenging. Giving away too much, too easily can make salespeople lazy and lose their hunger (not to mention frustrate the business owner or manager). Others can be too stingy or hard to achieve which does nothing to attract or keep the best performers. Remember, salespeople that win new business should be paid more than those who manage existing accounts. A commission scheme with an emphasis on commission rather than just a base salary will help to retain, reward and motivate ‘hunters’ whereas the security of a higher base salary will retain, reward and motivate ‘farmers’
Poor marketing and tools to support the salesperson.
Study after study shows that having a single approach to sales (such as cold-calling) won’t work on its own. Salespeople need solid marketing collateral, messages and campaigns that get prospects interested to meet with them. A well-ranked & effective website, email marketing and social media are great tools to generate leads that are completely free. They also need training and a solid understanding of the services and benefits you offer. The more time you spend training them and supporting them with marketing efforts, the quicker you will see them succeed.
This sales article was written by
Karen Andrews,
Director of Shine Sales Solutions, a Sydney based Sales Coach and Sales
expert that works with businesses to increase their sales through
strategy development, sales coaching and mentoring.
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