happy sales people = happy and healthy sales numbers
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DESCRIPTIONHappy Sales People = Happy and Healthy Sales Numbers. Jennifer Perna Vice President of Sales Blue Plate Catering. Overview How to Motivate your Sales Team Encourage Growth Develop Performance Based Compensation Structures Have Positive Numbers Hit the Bottom Line. About Jennifer. - PowerPoint PPT Presentation
Happy Sales People = Happy and Healthy Sales NumbersJennifer PernaVice President of SalesBlue Plate Catering
How to Motivate your Sales Team
Develop Performance Based Compensation Structures
Have Positive Numbers Hit the Bottom LineHow to Motivate your Sales TeamEncourage GrowthDevelop Performance Based Compensation StructuresHave Positive Numbers Hit the Bottom Line
About JenniferStudied Hotel and Restaurant ManagementHotel Catering BackgroundOff Premise CateringSalesperson six years sold $2.5 million peak yearSales Manager seven years average annual growth 20%Independent Sales Consultant 2 yearsVice President of Sales 5 years
About Blue PlateCompany OverviewSales Team CompositionSales ConsultantsEvent ProducersRoles and ResponsibilitiesDevelop Individual Sales GoalReviewed by VP Sales and Approved/ModifiedDevelop Sales Implementation PlansManage Individual Expense BudgetsManage Venue RelationshipsSell, Produce, Attend EventsGoals range from $500k $3 million based on experience
Analyze your Existing Compensation StructureHave you been Compensating the Same Just BecauseHas the existing package retained your staffWhat is your turnover ratio?Do you ask people why they leave?Do you have people that never leave?Do you feel your plan is fair and does your sales team?What does your sales team ask of you?Do you know what your competitors are paying?Geographic considerations what is the norm?
Analyze your Existing Compensation StructureIs it individual based or group basedDo your sales stars stay if group based?Benefits of individual basedAs a manager/owner how do you feel about the comp plan?Do your salespeople have a year end W2 higher than yours?How does that make you feel?Can you actually change the plan and if so what will happen?How will you explain and are you willing to share numbers? How open are your books to the sales team?
Developing Individual Performance Based Compensation PlansTraditional Compensation plans Advantages/DisadvantagesSalaryBudget friendlyCandidate pool wider traditional hiring processDoesnt pay for performance tenure based for compensation increasesSafest plan for sales personGoals important but not relevant to compensation
Developing Individual Performance Based Compensation PlansTraditional Compensation plans Advantages/DisadvantagesSalary plus commissionHiring process more traditionalSafe plan for business and sales personEncourages and rewards for growthGoals defined
Developing Individual Performance Based Compensation PlansTraditional Compensation plans Advantages/DisadvantagesCommission with DrawDefine draw = loanAllows salesperson stabilityPays on individual performanceMy favorite for off premise cateringEncourages individual goal development and annual growth
Developing Individual Performance Based Compensation PlansTraditional Compensation plans Advantages/DisadvantagesCommission onlyNo payroll risk to companyFor sales sharksShould be higher percentage than commission plus draw due to individual riskOwn the business mindsetDifficult to project goalsPart time options/Independent optionNo benefits to employee
Design Non Financial Motivators/RewardsWeekly Sales SheetWoo Hoo EmailsAchieving Year End GoalBig WinsContestsMiles for TripsBlitzes with Instant RewardsGift CardsTrade with VendorsFlex Time
Profitability Guidelines in a Competitive Marketplace and Building Your TeamWork Backwards stars with your annual budgetSpending time with CFO/AccountingWhat is the company profitability goal and how does the sales team fold into that?
Profitability Guidelines in a Competitive Marketplace and Building Your TeamWhat is profitability %? 10%? 15%What is net revenue goal? (after commissions and discounts)How much should the sales team cost? Define a percentage that works in net profitability after all operating costs and is based on net revenue (range between 8-12% before taxes and benefits)ExampleCompany wants 15% net profitability with 10% annual net revenue growth; Sales for year 2013 were $5 million
Profitability Guidelines in a Competitive Marketplace and Building Your TeamHow to Develop 2014 ModelNet Revenue Goal $5.5 millionNet Profit $825,000Sales Team Compensation Budget based on 8% = $440,000Sales Team Compensation Budget based on 12% = $660,000How do you spend the budget and how do you achieve $5.5 million???Where are your sales people pacing now?Where were they in 2013?Are they capable of more growth?Does the Existing compensation plan work as is?What are your existing commission percentages now?Does that include event production support?Do you want to build the team?
Reasonable Growth ExpectationsFactorsGeographyCompany HistoryCompany CapabilitiesMarket SegmentsCompany InitiativesNew Salesperson (1-2 years) 50-75% first few years$250,000 - $500,000 goal year one$375,000 - $875,000 goal year two$600,000 - $1.5 million goal year threeEstablished Salesperson (3-5 years) 10-25% annual$750,000 - $2,000,000Seasoned Salesperson (5+ years) 0-10% annual$1,000,000 - $3,000,000
How to Broaden Your Sales Team BaseYear one salary company investmentYear two salary plus commissionBudget
NetworkBuild from Within
RememberHappy People, Making People Happy
Jennifer PernaVice President of SalesBlue Plate Catering312.email@example.com