123 Sales Management

By Ramy Soliman

Road Map
Introduction. Planning, Organizing and controlling. Staffing and Directing. Sales Forecasting

Planning & Organizing

Why is time so valuable for salespeople? Why should salespeople classify their accounts? What to consider when determining call frequency? What techniques can to use time effectively? How to increase the # of calls made per day? Why should we analyze territory coverage? How can salespeople do their work efficiently?

Why is time so valuable for salespeople?

Salesperson working hrs/day = 8 hr. Salesperson working days/year = 240 day Salesperson working hrs/year = 1,920 hr. Salesperson earns = 60,000 LE / year. One hour of work cost = 31.26 LE Salesperson would have to sell = 624 LE/hr.

Setting quotas
Total volume of sales = 0.6 M.LE./year. Unit of sales = 5 Mbps per year. Total # of leased lines = 12 per year. # of customer calls = 3~4 per day.

Why should we classify accounts?

Planning is the key effective time management. First step in developing a territory sales plan is to analyze the accounts. 80% - 20 % rule.

How frequent to call on customer?

Customer Classification 1st
2nd

Estimated Annual Purchases 250,000

150,000

Required calling Period Every Month

Every 2 months

3rd
4th

75,000
Under 30,000

Every 3 months
As time permits

Sales Call Allocation Grid.

Strong
Attractiveness:-Accounts are very attractive since they offer high opportunity and sales organization has strong position. Strategy:- accounts should receive a high level of sales calls since they are the sales organizations most attractive accounts.
Attractiveness:-Accounts are somewhat attractive since sales organization has strong position, but future opportunity is limited. Strategy:- moderate level of sales calls to maintain the crt. Strength of the sales organizations position.

Week
Attractiveness:-Accounts are potentially attractive since they offer high opportunity, but sales organization currently has weak position with accounts. Strategy:- High level of sales calls to strengthen the sales organizations position.
Attractiveness:-Accounts are very unattractive since they offer low opportunity and sales organization has weak position. Strategy:- minimal level of sales calls and efforts made to replace personal sales call with direct mail.

How to use time effectively?

Make a list Of activities That should be performed Determine the Priority for Each Activity

Estimate How much Time each Activity will take

Develop a time Schedule For doing The activity

Compare the estimated time with the actual time spent on the activity

How to use time effectively?

Daily Planning

Select your prospect for tomorrow calls.( F9) List the names and location of each account. Carefully route those calls to save traveling time. Visualize what is going to take place at each call.(F5) Organize your data and exhibits to make each call effective.

How to increase the # of calls they make per day?

Stretching the workweek. Lengthening the workday. Using the telephone & the postage service.

Why should we analyze territory coverage?

LE. Sales per call. LE. Sales by products. Number of calls per day. Number of interviews obtained. Number of orders lost. Number of new prospect obtained.

How can we do work efficiently?

Daily work plan. Daily call report. Weekly summary report. Monthly expense report. Other reports.

Will direct mail & telemarketing replace salespeople?

No, but it allow them to concentrate their valuable resource-time on such important activities as selling and servicing key accounts.

Example for an Operation System

Go to Real Ex.

Sales Forecasting
It starts from the sales call cycle. Based on historical analysis & experience. Experience is not guesses. Questions are your weapon.

Probability to Close
Probability are not guess by the way
Question
Man answer the door Do you have a mosquito problem? ( NEED) Can you afford it? Does your spouse approve? Will you buy it today?

Answer
You say hello Yes I do Yes I can Yes She does Yes I will

Probability to Close
2% 10% 35% 80% 98%

Probability to Close
Lets try to fill in some gaps
Question
Man answer the door In-bound lead. Yard is suitable Do you have a mosquito problem? ( NEED) Have you compared systems? Yes I do Yes I do Yes

Answer
Says hello

Probability to Close
2% 3% 5% 10% 15%

What are you looking for in a misting system?

How will you know the right system/

You fit my needs

Yours seems to be the right system (tangible explanation)

25%
30%

Do you want it concealed?

Yes

35%

Probability to Close
Question Can you afford it? TRIAL TO CLOSE How would this system change your life style? Answer Yes I can HIDDEN OBJECTIONS Give articulate answers 60% 70% 80% 97% Probability to Close 40%

Tell me how you entertain Give articulate answers outside? Does your spouse approve? Will you buy it today? Yes She does Yes I will

Checks clears

100%

Sales Cycle Summary

We broke apart the sales cycle into its pieces. Focus on moving one step at a time. Easier to burger one bit at a time. Movement from 10% to 20% in the same as from 50% to 60% as from 90% to 100%. Creates a paint by number methodology to selling. Lets your reps be creative within a framework.

Why is Forecasting Important?

What would you do with a crystal ball? But what if you had a crystal ball and you had to control the outcome?
As it relate to your income? Your ability to own assets? Your employment? Your Future?

Forecasting Using Statistics

Event Coin Toss (single event)
Coin Toss ( Lets flip 10 times) Coin Toss ( Lets flip 484 times)

Chances Head 50% Tails 50%

Head 50% Tails 50% Head 50% Tails 50%

Results Win or Lose

Win 5 times Lose 5 times ( 10 X50%= 5 times) Win 242 times Lose 242 times ( 484 X50%= 242times)

Sample Sales Report & forecasting

Probability to Close (A)
10% 15% 20% 25% 35% 45% 60% 70% Forecast 7 2 $21,000 $7,000 $41,875 5 $8,750 3 $3000

Number of Prospects (B)

4

(A) X (B) X ( $5000 avg. Sales)

$2000