How this chapter is organized le force need to redefine sales roles? ices 187 How sales roles can reduce costs through improved efficiency 187 How sales roles can increase revenues through improved effectiveness 190 Examples of sales roles that focus on efficiency improvement, 191 Sales assistants Service consultant/customer service specialist Generalists * Examples of sales roles that focus on effectiveness improvement Product special Strategic account manager Global account manager 202 Hunter and Farmer 204 Strike force/Launch force Job sharing 208, Sales roles and measurement sales manager 210 Regional and national sales manager 212 Should sales managers sell? fry sales force structure specifies roles for the selling fe structures consist prim: ea tee184 Soe Sales Force Design for Strategic Advantage aah sass = les Roles 195 customer types. Companies that have homogeneous customers, few ead generation] Qualification | product lines, and simple selling processes find the use of generalisis jon] Pre-sales | Close ofsate | Fullilmen/sa ‘and efficient. As diversity and complexity along these dimer Lit easy increases, companies migrate to multiple specialized sales force roles. 4 Many companies have several different sp: performing separate sales roles. In almost every organization the Pareto Principle applies Tneaning that @ large percentage of the company’s sales come from 2 mall percentage of the company’s accounts. For example, many consumer goods firms see 20 percent or more of their business come from a single account - Wal-Mart. This concentration of opportu suggests that large accounts need to be treated differently from sm gecounts by the selling organization. Major accounts deserve a dedicated Tesource with an appropriate role ~ the major account manager. ‘Sales force structure and sales force rote decisions are intertwined. The stiueture decisions discussed in Chapter 5 are made with roles in mind Role definitions emerge almost spontaneously as the company makes its sales force structure choices. Recall that a sales strategy defines who the firm customer offering is, and how the selling is done. Successful sales s ent sales processes that deliver the right | the assign: products and se ‘ment of individual ~ sold more economic: __ different sales roles. This enables the firm to mate! Sales manager Sales manager and appiication | Selesmanager | Application po ‘engineer FIGURE 6.1 Sales roles for a seller of electric motors ly? Sales assistant, merchar merchandiser, lesa mee ae se use to execute thei nee les free up sal et, produets, and sales proces aatiss Pigue eo vities. Fi ler of office products assigns diferent customer Spes toinenegden iat ks es Tic investment Large bseses 1007 workers ‘Urban markets Rural markers be ses | 5sineses couctes | the three dimensions of sales strategy ~ products (the customer offering), and activities (the sales process) — ded into pieces that are assigned to various types of individuals (rl in the selling organization. get Generalist Direct salespeople ‘ith inbound cal center Telemarketing ‘Onee defined, the company's sales strategy needs to be implemented. ire highly skilled selling and Th the simplest case, a gener some sections of the sales strategy can be parti people in different sales roles. For example, pieces of ‘ocess that require highly skilled selling and add signi Value can be executed most effectively by a focused, speci on. Figure 6.1 shows how a seller of electric motors assigns various st process activities to the individuals in different sales roles who can exes those activities most effectively. aspects of the firm's sales strategy. This is a powerful way co gain ciency. It is at can be accomplished by a selling resource that is cheaper tha ith equal or greater effectiveness? Can low-va =eraanpene _ BENEFITS OF SPECIALIZED SALES ROLES Specialized sales roles can benefit ou differe FIGURE 6.2 Sales roles for a seller of office products stomers, salespeople, and the fi fF beets eee through the to examples already given he ice products company. The seller of motors to original equi a pr © rigid equim inufacturers (OEMs) defines twoTe 186 Sales Force Design for Strategic Advantage Sales Roles ta required to sel electri motors to OEMS are diverse and complex itis a nuit to find salespeople that possess all the skills necessary to execute the complete selling process. By defining two sales e firm has a wider pool of job candidates to choose from. Engine: Pills and weaker selling skills are good candidates for application engineet positions. Salespeople with exceptional selling skills but weaker technical Pills are good candidates fr sales manager positions. Through specializa: tion of expertise, overall sales force effectiveness increases, and the sales force generates higher sales. In addition, more people touch the customes thereby reducing risk for the company in case of sales force tumoves. Frome ‘customer standpoint, customers have two points ith the seller, Since each point of contact has a specific expertise, this make pusiness and allows for quicker response to their inquiries 1, salespeople find work more meaningful because their ‘match well with the requirements of their role and theit re covered by the other sales role. DOES YouR SA\ nOLEer LES FORCE NEED TO REDEFINE SALES ince sales force structure and p see ° nd role decisions are intertwis force reorganization will require role redefinition Thc osed to eoanin out asthe forces of change ~ customers compat be en ronment, corporate strate : ret pressure omnent comporate strategies, and performance challenges — exert pressure Roles may also need . to change if the c : executed effectively or efficiently. Sales fore toes ‘hen become mae often become more specialized as the company's cation and diversity increase This a a ose sophisti New roles also are created wh hone. ization of sales roles has many benefits for the office pr ‘customers, and its salespeople, From a.firm standpoint, allow the firm to match spending appropriate opportunity. The most specialists — focus sole areas where travel time and co: generalist salesperson serves the needs of each large cust ing to control travel costs. Since medium and small-sized custome’: not likely to generate enough needs are met with less expensive direct ;ching sales resource investment appropri are created by partition ‘ ing each component toe sreetan eee) into components iponent either more effi bg selected elements of he sles satay ieee e various sales roles curently used by mary com in Table 6.2. y many companies are kept tion appropriate to their level of need. ower. Finally froma sales force standpoi career path options. Telesalespeople wit can become generalists, while the be pee aeEeneeh meee Saree = Sales Roles Can Reduce Costs through improved ight acumen it generalist salespeople oles that focus on cost iciency improvement, For reduction target effi rget efficiency 2 telemarketing salesperson averages 25 to 30 completed calls per le @ face-to-face salesperson averages just 5 1, ¢ TerSales Force Design for Strategic Advantage OSES ED 168 aoe Sales Roles : 89 ‘Table 6.1 Examples of circumstances that suggest aneed fornew TABLE, - sales roles |. ABLE 6.2 Examples of efficient and effective sales roles eee eer cee iclency-focused sales ro a ales roles Now sales ole that Effectiveness focused sales roles Sales force symptom might be needed « Customers complain that salespeople dat have Product Customer sence speciai Suffitent product or technical knowledge Technical speck Parstime salespeopt ‘Account mana 0 esmophe focus on eas) to-understand products and Applicaton engi Faptingslespeonte Secounmanager ignore complexones sieve —— Seateoi account manager « SMespeopie arent getting accessto technical decision Global account manager makers T industry knowledge is required to sell effectively ‘Market specialist Mid-market salespeople Telesales smaliaccounts Major account managers Customer retention s poor insufficient business comes Service consultant from existing customers each year Customer serv Retention spe SeeeiaaicececteeEEHieCoeeeeeee tttineeeeencccau@siccesuueeees Many customers have switched to competitors Win-back specialist veswitchedtocompettos Orr T There are too few new customers ‘New customer {Salespeople spend so much time servicing existing acquisition eae reets that they have litle time to spend generating Specialist or hunter new business J There are not enough qualified leads Lead generation Telemarketer yeople spend too much time doing administrative Sales assistant Sac J Salespeople spend too much time providing information Telesales ats accessible from the company’s web site, product ‘brochures, or other internal systems «+ Salespeople spend too much time with low opportunity ‘accounts + Travel costs ate excessive 7 new product launch requires intensive sales fore effort _ Launch strike force fora short period of time higher level of call roles leverage the use of less ex, selling organization to be comy sales roles include general service people, telesales, and part There are several ways that sales ciency, Small, compact sales ter jespeople, sales assistants, cust e and independent salespeople. es can bring about sales Force: a Therefore, sales for , 7 iz | ore face-tocface mea, Bade UP of generalist salespeople tend to have lers than sales forces comprised of seling tasks” cheaper sales 88 inefficiency. Eiffice: is common complaint heard "sourees cin accomplish this roles are very useful dur added by ahighly paid field opportunity tiers, For market, and small. An uunts. Rural accounts 7. email, web sites, and direct luct portfolios can exceed the bandwidit lider products, products with lw sales o products ways eatin relooked by as carrying a broad product anseetsales, part-timers, or independent sales agen selling these products neinlahitiiia company rescue Salespeople sine oun conmision pyrene see they con ee thersches ose ne help with paperwork and is eet190 Sales Force Design for Strategic Advantage Sales Roles i 1 How Sales Roles Can Increase Revenues through Improved Effectiveness Strategic importance oma \ Complexity and value of activity ae Effectiveness ‘sales roles that focus on revenue growth target effectiveness improvement veness reflects the rate at Which the sales force generates sales for its “effort investment, For example, according to a survey of business-to-bust jemarketing salesperson ness marketers conducted by Cabners Research, eventually closes a sale averaging $17,894 contacted. A face-to-face salesperson ev $82.72! with 62 percent of customers contacted. Face-to-face selling is more Gifective than telesales because it results in higher revenues. Effective sales Soles use specialized expertise and a focused strategy to increase the value qhat the sales force brings fo customers, thus resultingin higher sales. Exam- ples of effective sales oles include product, market, and activity specials, and account managers that coordinate the activites of multiple specialists fective sales roles are likely to generate higher revenues, they rerease the firm's costs. Compensation is typically higher for specialized sales representatives than for general sales representatives. Often, these eff ales roles involve greater travel and management overhead, espect multiple specialists are assigned to the same i customer, Because of this loss in effective sales roles are best used only to serve the customers, 8 .,and perform the selling activities that are of primary importance im. For example, effec: ae ales roles often Cover large, strategically important customers and sel FicuRE . 3 Efficiency/eftectiveness balance can reduce increase revenues cent _thcrease). Yet sometimes a sales | role enhano _ffectiveness of the sales fore smultancooay Feeney a the sales roles are offen best used during the stages of the urpose of a sales assistant is to improve 7 For example, the primary where the value added by a 1g tasks 10 a cheaper resource, yet sales acaane oe Some sel Sales process, such as pre-sales and closing, ; a sales assistant may Figure 63 summarizes the efficiency/effectiveness emphasis for S16 role definition, Efficiency strategies are likely to be most appropriate £4 spew to-undersiand products, small accoun(s, and activities of moderié ‘complexity and value. Effectiveness Saiegies ate most appropriate oy “Girategic products, large accounts, and high-value-added, more diffi sevitics. The challenge for many companies is where to draw the lite Perhaps a good heuristic is to pursue efficieney strategies as long as incremental return from an effective strategy such as specialized pers s not recover the cost of that effective strategy effort. Si a firm should pursue effectiveness strategies as long as the incremé value obtained from those strategies exceeds the cost of the additi personal selling effort. In this way, role defi 2 efficiency and effectiveness. tact cales roles are designed with one primary goal in can improve efficiency ay echnical tas more quickly. T their primary focus ~ e However, some ways that efficent s, and vice versa, are also noted, ; ell sing his oF her skills to complete ing section organizes sales roles cy or effectiveness improvement. les roles can also improve effective amples of Sales Roles that Focus on Efficiency les roles that t c ‘arget efficiency focus on cost reduction. These roles are igned to cover small ¢asy-to-understan « geographically disperse custor Bessy to-u id products, or perforin perse customers,a 192 Sales Force Design for Strategic Advantage Sales Roles 193 ‘Salespeople can be both efficient and effective “The most successful salesperson ata financia services company that calls on banks, ‘customers. He does all his selling over the telephone. ns for corp rporate gift end more time build ips with existing custo rete rg custome Tohelp he sales fore achive never Ble were stippedef a fusomer 2 sentative Company sles grew 30 percon was implemented. = individual assigned to perform an efficient sales role is as effective as a face-to-face salesperson. The following section describes some of the roles companies use to improve efficiency. Sales assistants Sales assistants are hired to perform administrative sel ing up a salesperson’s time for high-value-added selling activities. sales assistants ate typically paid less than salespeople, overall efficiens inereases. <1by people. Many compa- tnd canes Neb Stes tt ep cusomers oii Seca 'pport able work that was f Company tobe unser tote eset This ot ony eancere Fone ut can also increas : ; inns 7 days a week. “Ponsiveness by being available 24 hours a ‘The salespeople at a m -profit erganization secure cor thelr programs through lect contact with senior management at large corpors- ‘ions. Maximizing sales force productivity is very ir The company employ: ‘wosales assistants at headquarters thet support the helps selespeople at the front end of the sales process, whi fback end, The frontend assistant is @ prospect researcher. and scans the I potential leads and maintains a database of prospective fied leads are passed on to the appropriate salesperson for follow-up. The back: sales assistant helps the sales force after a sale fs closed by preparing monthly stat also share ad ion frustrated customers. By et on their own time, Ciseo Telechannels Every company’ ny’s sales strategy includ teractions can be as si a a Service consultant/Customer service spe Providing good after-sale service and suppott is critical for customer reter: tion. Most salespeople spend between 12 and 30 percent of their time on usually from a call cent : all center at service-related activities such as finding order status, answering questions ‘er al a central location. Telechannels can and resolving billing dispates. Many companies hav anes refer to the use of telechannels iguishing it from outside sales that are made by sales- yy to service consultants or customer service specialists. effectiveness with which the task is done, and also enal side salespeople often rely on other non-fé non- has ect mail, emi and the Internet ti Tent terms are used to descril ach stage of the sel ibe the us enhances the sales force to spend more time selling. A customer service specialist ort several field salespeople. Often, a good deal See eae oni eeeSales Force Design for Strategic Advantage ‘TABLE 6.3 Telechannel roles at different stages of the sales process Pre-sales Tegmeand_ Elenesctigand nitions Toe prospect Cas Using the telephone to gereate and qual new eusforancthersalesoracreditcard Shores a ees, SS Somes “Handeiemon adnate oes ssipenotontc seit Guremtemndaialty ses 3 eee ples thetare oo small or lnimportantfor afield sles: cu force + Scheulecalsate appointments for he field sles force ‘atistaction surveys “An office products Samples ‘company uses an inside prospecting group Snswers questions and pre-qualifis these lads fides examples of frequently used terms, and provi commonly performed by telechannels st Telechannels are a personal but si tags icantly less expensive way the average telesalesperson cat eT el tala Se Sales Roles 195, Telesales and field sales teams at Oracle he telechannel function. in the past face-to-face sales- :people fourtoone.Currently the two groups are equal Every face-tovace salesperson is teamed with 2 sin they share the same account salesperson. In addition, a telesalesperson usually costs the firm about half of what a field salesperson costs. While cost reduction is typically the primary driver be es, using the telephone fo reach customers can also helt Increase sales to both new and existing customers, New customers in geographically dispersed markets that have not to significant travel costs may be reach addition because telesales has a lower c becomes possible for the firm to sel Drofitably. Sales to existing customers can also increase through the use of telechannels. Telesales is frequently used to perform just some of the activ. les in the sales process. Pre-sales and post-sales functions are commonly assigned to telesales personnel. The additional contact with customers Provides @ way to improve customer retention and increase loyalty Telechannels can facilitate faster customer service and {echnical support available 24 hours a day. By using the t Some interesting facts about telesales 8.2001 survey of over 23,000 sales organi yevealed the following facts about telesales S in business-to-business markets Inside sales efforts (telesales, email, and dliect mail create 20 percent ofall business-to-business sales; face-to-face selling creates 80 percent. 57 percent of customers contacted by telephone make a purchase:62 percent of ‘customers contacted in person make a purchase. + The average sele made over the telephone is $17,894; the average sale made face-to-face Is $82,741, On average, companies cover customers purchasing under $35,695 a year by Using inside sales methods. * Customers speak with an average of 46 different salespeople over hone each week:they meet face-to-face with an average of 18 dife people each week. Source: Reed Research Group, volt Cost of Sales Cals in Busnes:-to-Suciness Markets, ‘ouary 2002 availabe at wenn: cahersarecomn,196 SalesForce Design for Strategic Advantage 7 att : Sales Roles 7 ‘can maintain higher frequency of customer contact after 2 sale, thus tnhancing the firm's ability to build strong, ongoing customer rel ships. When field salespeople work with inside salespeople on the same accounts, good coordination is essential for success. : Part-time sales roles increase sales force retention at Pfizer well run pa time program can help a s through increased retention of tention of exper corset sued the bes toast als 1e company found that sorne The company found that some of is high pt Part-time salespeople Companies sometimes employ salespeople to work less than a full-time Schedule. Many retired people, as well as people caring for families and find part-time work attractive. 'e salespeople are cheaper to employ. They might tion) be paid an hourly rate which is less than Yr their full-time counterparts. In addition, they are le for insurance benefits, pensions, or paid time off. If they do qualify to participate in the company’s benefits programs, they right be asked to pay a larger share oftheir health insurance, while bene- ‘such as life insurance, pensions, and payroll taxes that vary with salary will cost the employer less. ‘There are costs to employing salespeople part-time. A part-timer may require the same office space, car, and computer as a full-time person, The tse of part-timers can be inconvenient for both customers and manage- ‘ment, since part-time salespeople are not available during all regular work hours. Part-time salespeople can add complexity to the sales manager's job, The manager's span of conttol increases, part-time tumover rates are ‘and absenteeism is more unpredictable. Finally, numerous issues resins Vita postions were were filed with Pes ong rackrecor wth he corpany bt prefered ne ‘with benefits. The program was a huge succe: inareas cet ovr aes without lista unc the nub af saspeopleln depo bed. The cornpanys management of these salespeople woul it 7Specatof th )ple would have quit had they not been given the option ‘management must decide wheth ' ide whether to compensate part-timer J Yeiitrs vacation days, and othe time off Pee eee fany part-time opportunities in sales are i : Mave in sales are in lower-payin, 1e companies have placed part-timers in significant roles, Independent salespeople high regarding the compensation of part-time employees can consume manage: a ment time. For example, often the hours in sales jobs are open-ended, act to sell the company's products and services ts oeorare customers Manufacturers’ rey i / presentatives and independent contr | findependns thet work indvidually. 180s inde consac sas ess GF Setters agent organizations, and brokers. Independent ales people Restmpény compensates them by pying a commision on sales Some [ poset spel Ober eon oes me see pao allege | employing just a few salespeople to use of independent salespeople speople can hi ‘When a independent sells the pots of sera icky to estimate how much to pay a part-timer, In addition, Part-time sales roles help a book publisher cover remotely ated stores customers {book store and mass ‘A.book publisher had agreed with its major re ‘merchandiser chains) to provide in-store merchan individual store locations regul book displays. Covering sell toven might hav a salesperson busy ful ‘company solved ts coverags popvlated areas. The number ize of: ‘within a reasonable deiving distance from the sal ‘people were cheaper to employ, since they were pad ‘nd did not receive benefits. The company also-hired temporary part-time co ae ie tional periods and during the holiday season. customers or geographi olen geographic areas, suc ants ov remorely located accounts. The use of independent alee ices risk for companies not ready or able to inve oan Bee 97NN _——_—— Sales Force Design for Strategic Advantage Sales Roles 199 first time and they entire customer lists : = when companies are launching a selling effort for the : er list into geographic sales territories that are assi do not have market access or product fine breadth to justify their own sales sal Salesperson would sell all products and perv sll cok force. types of customers in his or her as it E Many companies use independent salespeople to sell products or to sales roles are typically the most cite way c cover market segments that are of secondary importance to the firm’ any fixed sales force size. There i less sales force travel and inission, That way, the firm's own sales force can be more effective by ity because geogra eland Focusing on those products and markets that have the greatest strategic and contiguous, For this wee significance. This strategy is especially appropriate for sales forces that are Teduce sales force costs often decrease the nan responsible for many different products and markets and thus face band- lace them with more generalist sale in constraints s of generalist sales roles are provided ne use of independent salespeople can also create effectiveness gains. roles section of Chapter 5 (Designing the Selec farce pecs Independent slespeople who have established connections and experience ) can be more effective at gaining entry into a new and unfamiliar market Ee mples : Suatly When a company’s products have synergies with th oer pro J Examples of Sales Roles that Focus on Effectiveness uicts that an independent sells, buyers that value the convenience of one- provement stop shopping may purchase more. Sales roles that enhance effectiveness f - c tales roles porcantee ffectveness focus on top-line impact. Etecive Independent salespeople help a Canadian sales force cover pe al high salve- more geography = eseyeseestenne specially in those areas with hi Ina country as big as Canad sls tarts canbe very are snd groan hic importance to the firm. The fel emanageble A Cran specay phamacstal mPany Pompanies use to improve effectiver ral areas. Thus, the compar Tated areas Since the contract sales force also sold products of other | JB, fers, costs could be shared and coverage was affordabi duct specialist roduced sever new products and added moe ci Product specialists focus on selling a Particular product or product line. Se oesayetiedie Specialized knowledge, expertise and focus, product can be move effective than generalists at selling their specific rey me OF more product specialists might call on customers, : ci ey might assist a generalist in doen pte a OB, ls eet sme firm gives up control of the quality of the salespeople, the + OF support. Account managers also leverage product specialiste and the customer relationship. In addition, when th ation and examples of product specialists products of several different companies, the firm d specialization section of Chapter 5 ( amount of selling time allocated to its products. The company g the Sales Force Structure). i sign- only provide independent salespeople with good financial inc sell their products, but must also help them understand how the company’ products can add value to the independent’s customers. schnical specialist nical specialists concentrate on the te © chnical aspects of the al specialization allows tasks that are : mmplex or that require in. evledge t9 be performed mote effscively by 4 terme ee ined and experienced at performing those tasks. The vols Generalists Tech- : 4 ‘A generalist salesperson specializes only in the geography that he or she) OE ae eee eee oe200 Sales Force Design for Strategic Advantage Sales Roles 201 Other times, market specialists focus on a particular customer. Many Kraft salespeople are dedicat ing 10 a single major customer, such as Wal-Mart or Kroger’s. Market specialists become very knowledgeable bout the customer or industry they serve, and thus are more valuable to Customers and more effective at creating sales. More information and iples of market specialists are provided in the Market-based special- ion section of Chapter 5 (Designing the Sales Force Structure), Sales roles that improve effectiveness: Customer trainer Medical technology company Sonosite product, the ist jrasound system, in 1999. signed for use in private ang offices, hospitals, imaging centers, and radiology departments. Sonosite discov- fered that the most effective way to sell uct was with a team of professional ‘The company hired experienced s tal equipment who were effective at ‘and manage power. Recent the company created six "Center of Excellence” design labs to provide customer fom designs Account manager An account manager is a salesperson who has ty for an account. Account managers are typically general broad knowledge of the firm's entire product line and ‘Their depth of expertise is in understanding the customer's needs and deci. ion criteria and process. Account managers are expected to develop and lurture relationships with important decision makers at their accounts, Account managers sometimes work alone, but since they often lack the depth of product or technical knowledge required by a customer, they frequently work with product, technical, or other specialists who can provide this knowledge, Mrrking together with h Selespeople to ensure the ness of ea customer were met after asle was med Innovative, complete ci ‘omer solutions more quick! Strategic account manager specie ae gute commen i indus, such s software and tle muncitins, whee technical reduts have multiple end ses. A gen ist account manager often calls upon technical speci top customers with ecaical information demonstaon, conan i or to help close a sale a ire rs intonation and examples oftechrical specialist are provided in ion ection of Chapter 5 (Designing the Account managers for very large or strategically important accounts often have a special role. These account managers have been called strategic account manager (SAMs), key account managers (KAMs), national account managers (NAMSs), or regional account managers (RAMs) depending on the size and scope of the accounts they handle. The more general term of strategic account manager (SAM) is used here when teferring to these roles. dedicated to just one ot a few major accounts. The iness manager of the firm’s relationship with the tomer, and is responsible for maintaining the business as well as find ing any new opportunities within the account. Often, the SAM leads a strategic account team that is composed of multiple sales specialists work- ing together to meet the often diverse and complex needs of the account, ‘The SAM may also bring resources from other parts of a company to assist Force Structure). Market special Market specialists concentrate on selling to particular customer or of easter. Market specialists sometimes focus on selling to particu For example, Xerox salespeole whe eal om large accounts san specialize in one of sx industry sectors. Many firms have discover eso, wer of specialization by industry. Customers like to buy from salespeo example of how one company est De wi have empathy for and understanding of thei unique circumstance P management organizat nd needs. This fs particularly true in selling consulting services, wie industry knowledge helps define how products are used, an SL Daafegic Advantage types and sizes of customers family-owned businesses to ns, Increasingly, the firm’s were becoming concentrated among a small number of large, 1, key customers. A successful selling process with these large 1s was Yery different from the process required for smaller is. Key customers usually had long, complex buying processes that from many different functions. Often, multiple locations, Buyers at these , sich as customized warehousing jons, Smaller accounts did not have purchasing was done cer accounts expected speci solutions, and asked for price cor any of these needs. Tn order to devote more significant and focused resources to these important customers, the firm redefined its sales roles. Two different account management roles were created — account managers and strategic account managers. Account managers (AMs) handled mid-sized account that required just one or a few of the firm's products and services. AMS also spent approximately half of their time prospecting for new customers, Strategic account managers (SAMs) covered large national and mult national corporations that required integrated solutions consisting of many 's products and services, Strategic account managers spent '80 percent of their time maintaining and strengthening these most important customers, and spent only 20 percent for new business. These new sales roles enabl luable focus on its most important customers. ‘The new org mn faced several challenges. Salespeople needed bbe matched appropriately with the new roles. The skill set required f fe selling relationship with a large national ferent from the skill set required for « typicé as to drive growth by increasing market penetra ‘communication process needed to be established so th nn credit, distribution, and other needs could be coor ‘SAMS and the various AMs who were responsible f ‘working with the branch locations of national accounts. ‘Table 6.4 provides a summary comparison of the SAM and AM sal roles in terms of customer assignments and key responsibilities. ‘Table 65 summarizes some characteristics and skills possessed by successful and outstanding strategic account managers. Global account manager ‘At many firms, implementing the strategic account management cone ‘Many customers ranting their ope ome markets, demand for wt products Markets, technology advances erode. iia and competitors expand global oper ‘expect companies to provide global sol Asuccessful SAM: Focuses on important customer event cues on important customer events aes resources judiciously | Makes the company th seagithe company te prefered supplier Ma CC SSEESOODS’~S ee Sales Roles 203 TABLE 6.4 Comparison of customer assignments and key responsibilities i of strategic account managers (SAMs) and account manacers (Aen ) SAM role AM rol Customer es ‘small number of fge multi- ational corpora forts with Ads vets eons wih Alls Gopererf total na 2d occenorer tnd erations around the world as growth rat 0 diminish in es increases in emergin; 8 tion and logistics barriers, is. More and more, customers tions that reduce costs through TA ist BLES.S Characteristics and skills of strategic account manag ers Seer ern An outstanding SAM: 7 Also focuses on customer outcomes mee oy inderstands customer techn pen technology and Also develops ca eee inks price and cost svaie | cose to compar stomer solutions ‘Thinks value Et ty operations personnel Waa covets pany eur Bees _ Seite mdrepaaie | Baa Inderstands customer's proc f _ esande astm pohia wae aha SRS Seay PEE Eee eH ‘Achieves high ROP the compan the dominant Supper at ajoreemPany the dominant supplierSales Force Design for Strategic Advantage NN — Le Sales Roles economies of scale, create value through collaboration, and enhance the customer's strategic advantage. ‘A global account manager (GAM) leads a si globally coordinated and integrated sales and service approach team that provides @ impor- fant customers thet have coordinated and integrated strategies worldwide the Most large, multinational companies have developed global teams — ibank team was described in Chapter 1. ‘A. successful GAM excels by blending poli .derimanagerial, and communications skills. Like traditional salespeople, GAMs must have excellent communication and selling skills as well as good nowledge to be effective. However in addition to these J AMs also possess an array of general management skills, including leadership and management abilities, business and financial ‘acumen, and strategic vision and planning capabilities. Successful GAM empathy and a passion for international knowledge. Figure + of several of the more important GAM competency. requirements, Hunter and Farmer ‘Some companies have a sales role for the acquisition of new customers (hunters) and another role for the retention of current customers (Farm, Hunters are responsible for finding and bringing in business ew accounts, Once a sale is made, farmers cultivate and grow the rela: Jhip and generate repeat business within the account. Since m ;panies realize the majority of their revenue from current customers, + Coornate acess to serous often wot ‘Sertng tine authority + Provide cultural empathy 5 poston for inerationa + strategic planner 1 Global team leadership and financial acumen 205 farmers pla ll Saino any & critical role in protecting the firm's reve docause han cBstessve development of new acco ns is ene s T8 are dedicated to this pursuit 7 ‘account development and high current account enna ptimal growth rates. Ano! this pec | the company can : job thus increasing overal ty fast-growth com, ipanies 66 illustrates key selling responsi computer industry. to the right hunter and farmer sales roles, Table Of hunters and farmers in the TABLE 6. Key -6 Key responsibilities of hunters and farmers i computer industry tee silts fon Account ac ton ohne) ese tan hc cate Ai haar Sell products, services, and sol ion | * Acquire new accounts - tomers and prospects fey esonstilies fan count reat arm) Sencemain an eaned cheer ron ad deve esate lopment ccourtsin te es stategles to each cent and see fo gerae a ible lanage Internal communi Manage internal communication ore Develop account lan ands its among peers and cross 5 call strategy for each ci : ich client satisfaction Issues when necessary Main Fevenue within assigns Increase presence nse aaned terior toreachand exceed quota salesperson experiance Y Dasedon | “reste Joe shaing s Knowiedge | [> Kay esuicareas | 1 a One of the best ways for a sales force to improve its effectiveness is to : Calls | [Sales reduce turnover of its most experienced and talented ~ dollars, | cend, more and more companies are allowing their be: ae flexible work schedules, so that they can continue to sell while raising chil- «+ Repeat rate dren, caring for aging parents, or even pursuing a hobby or second career. aes ra ants Options such as part-time work (see discussion earlier in this chapter) and | ing can increase satisfaction and retention of high performing salespeople. Gross margin Profits Can job sharing work in sales? Many companies have successfully implemented job-sharing arrangements sending ‘he sales force, including Xerox, Condé Nast, and Abbott Laboratories. With job shar adder aa | ‘wo salespeople work together tof ime sales position. They share respon. competitive | ritory or set of customers, splitting the compensation for feedback ry and incentive pay. The two salespeople typically work ‘one day pet week of overlap. Job sharing is often preferced by customers over part-time work. because it allows everyday access toa Falesperson.ln fact, when two salespeople manage an account together and con: ily back each other up, the customer relationship can be even stronger than be with a single account manager. Successful job-sharing arrangements rely on extensive communicatir between the two partners. Presenting a unified front to colleagues, customers, and ‘management ‘Good Job-sharing partners share the same work styles and | ‘ave compatible personalities, and share 2 wilingness 19 FIGURE 6.5 Examples of success metrics for sales roles ig customer needs and generatin “hese roles is typically measured les for the firm. Thus, success in gous us one aro sorkof one another’ ideas In adltion flexibility and smart use of technology such | 1 customer at force eosin aden fenoty anv foe | Fai, Other ale ls, sch as ead generation oc estore sence ae ae ee ccuhtunn seiebutnerinen sted results, but mor indeed, Metres that measur att, such Prospects contacted or customer service call Ta a de ae teEE IESES'“S 210 Sales Force Design for Strategic Advantage : fe Sales Roles Use of company results metrics is common. ‘Over $5 percent of companies rely on company results metrics to some extent when ;people Sales roles that are nct linked to atleast one company ly donot last very one. f, Serve two constituencies: the customer spetson meets customer's needs and, at 'Y achieve its objectives. The sales Some categories of success metrics are easier to measure than others. ‘Company results measures such as sales and profits are usually the casie to measure, while people and culture measures such as sales force know! edge, skill, attitdes, and behaviors are usually the hardest, In addition, J some categories have & long-term impact while others are very short-term i jure. Managing people and culture or sales force activity tends to have a term effect, while managing company results has a monthly or quar- jpact. Also, success metrics should be compatible with the firm's .gement style. A management team that embraces empowerment is xy results metrics. On the other hand, a hands-on, control roles. Managers are o through others management will likely focus on act Figure 6.6 describes some additional conditions of the selling environment J Figure 6.7 shows th that favor one set of metrics over another set. instances, the sales Fan primar ‘motivation, and efforts of effective sales force activities People Come aa[ Sesion | &>- comoary | cop cute city rest \ a Manage $ other FIGURE 6.6 Success metrics should reflect the selling environment Achieve sources at oy Informational, goals Role of Sales Managers 4 eee sist others ‘se First-line sales manager First-line sales managers play a critical role in the sales organizatia ‘These are the managers to whom salespeople report directly. Typical : oe they are former successful salespeople. They know wi takes (04 Perensa 22 Sales Force Design for Strategic Advantage Sales Roles aa assist others, for example with key accounts or challenging situations. In ‘some companies, sales managers also have expli Ina people management role, sales managé “bless bo people ened ates hte sales maaze First-line sales managers are likely to participate in all of these cies bat fe esponsibility fox each activity varies serosscompanis ‘Some decisions, such as recruiting and goal ng. mit be placed at hehe -ment level than first-line managers. “Sits boston centaly because of the sls required ov the need for | rity across the ‘organization, or because it is just more efficient. sales manager or vice president of sales. With this multi-level organiza- ‘on, the salesperson is responsible for customers, fi ‘managers are responsible for salespeople, regional or second-line sales managers are responsible for first-line managers, and ultimat national sales manager or vice president of sales is responsi sales team as a whole. Hi ble for the programs’ an example, a vice president force success drivers sucl igher levels of sales management are respon: id systems that drive sales performance. t of sales has primary responsibil ‘h as team sizing, deployment, recruitin - Figure 6.8 shows the s of salespeople and the Regional and national sales manager te Drivers ‘ctviies Renuits sal levels of sales management. "pp Seles ve ea ales organizations often have seve Larze ample, many organizations have regional manages that manage Gan tamer = Satie frst lin ers report to a the first-line sales managers. The regional managers rep\ Salespeople =p TABLE 6.7 People management activities of sales managers Select the team + Recruit and screen applicants © Hire and fire salespeople Pele saapeoole develo sls kronledg, ar competences + Gotha couse . » SerSbaeoraalespeople measure progres and provide eedback sales managers at a number of firms The company’s selling process can be sales manager. He or she can bring prod- specialization that is unmatched by others in the Lead the team * Develop and sharea i les manager and even the CEO, In established sell- ‘with salespeople ith large accounts, Asking sales managers to play tole in selling has both advantages and disadvantages ve side, sales managers are often promoted to their position to be effective salespeoy Sraempower whl providing drecton and advice S Buon thatthe sk rim ented effectively 5 Hold slespeopl accountable Hee Ede 5 noge company sets such asco compas teepones and of space ge operating expenses sich a lresreocation, ave ing he or she the company continues to benef ipanies frequently keep their sales ‘g00d at sales in a selling role for fear of losing sales is and experience. Com, agers who are fume. Some customers value having a manager involved in the sales process. fen a customer asks to speak with a person who has a higher level of Rie eS ee eee eee t 1d general manager, attending to @ broad mix of marketing, finance, and + Bea good general manager at human resource Issues Increases, bonuses, perks, trips, and security, and214 Sales Force Design for Strategic Advantage of sales managers to the following Jing an important customer unless the sales manager in the relationship. value to having someone in a position of und experience are unmatched by others “There are key account enough of them to dedicate a cil sales force attention but there are not ime key account salesperson. Finally, many sales managers enjoy retaining some selling responsi Tt helps them stay connected to the marketplace and provides them with ) additional earnings opportunity. "The danger of giving sales managers ‘may spend too much time selling and not enough time | Some firms find in necessary to limit the amount of managers may engage. Regardless of the company’s decision about the selling responsi sales managers, role ambiguity must be avoided. Sales managers need © ‘know what is expected of them, how they will be evaluated, and how they will be rewarded. Accountability is very difficult to engender when the is role ambiguity. SEE eee ee eee eee eee eee Sizing the Selling Organization How this chapter is organized 216 ink betiveen sales force slze and profitability 219 ls force size affects customer coverage and product effort force efor ress aa force size affects profitabilit oe Nes force | ight size? : i les force become too small? i +s force get too big? i blest song tee BA Et 2 be a How to determine sales force'size. 2 Market-based recommendation oe 2 a9 2 Approach 3:Target-rete 0 ever percal eto Aeproch@ es esgenemeted a poteah 5 Gegahiconcentoton meth eteton method Pate ae approach should you use? i ren to use the activity-based method Fg rethed eo turpercalmeth When to use the sales response method = it ee to use the geogrephic concentration method 7 io araslta hands uncerciny an wa onthe compete poston test 2 es ng acest ton the sales orc mere tet 2s