simple steps for growing your business – sales · simple steps for growingy our business 1...

Simple Steps for

Growing Your Business

1

Growing Your Sales

Vince NetherlandExecutive Director, Polk County Economic Development Corporation

[email protected]

Let’s Get Started

Briefly tell us about you:

• Your name

• Your business

• What you hope to achieve through this program

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Katrina Markoff

By the End of This Workshop, You Will Learn:

• How to choose effective distribution channels

• How to evaluate your sales process• Who should be on your sales team• How to motivate your sales team• How benchmarking can boost your sales• How to implement sales and CRM tools

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Marta E. Maxwell

Expanding Your Distribution Channels

Understanding Distribution Channels

Distribution channels are how your product or service gets to the end user. Expanding distribution channels helps grow your business:• Builds brand recognition• Can decrease risk• Enables you to reach more customers• Potential to increase profits

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Jennie Dundas & Alexis Miesen

Expanding Your Distribution Channels5

Direct• Sales Team• Online• Catalog• Storefront

Indirect• Wholesaler/Distributor/Dealer• Retailer• Affiliates• Value-Added Reseller (VAR)• Consultant• Manufacturer’s Rep

Multi-Channel/Hybrid• Combination of Channels

Examples of Distribution Channels

Expanding Your Distribution Channels: Discussion

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Examples of Distribution Channels

What distribution channels are you currently using, and what have been the positive and negative aspects of using that method?


Channel Choices

As you assess distribution options, consider:

• What are my customers’ needs?• How could your product/service meet those needs?• Who is my ideal customer?• How can I find more of those?

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Customer Needs Influence Distribution

How do customers expect to buy?

• Customers require information/service: In-house sales team

• Simple buying process: Online, retail, catalog• Customers buy online:

E-commerce, resell to online retailer, affiliates

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Andrew Dunn


Research Distribution Channels

In addition to your customer needs, consider:

• Competitors• Geographic location• SWOT• Barriers to entry• Cost • Pricing/profit• Sales/marketing• Channel conflicts

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Assess Options and Prioritize

• Ease of entry• Geographic proximity • Financial goals and risks• Estimated sales volume• Competitors’ positions• Management experience• Staffing capabilities

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Expanding Your Distribution Channels: Activity

Assess Options and PrioritizeKeeping in mind the Business Needs Assessment results and the SWOT analysis you completed in the first session, fill out as much as you can on the Distribution Channel Assessment worksheet.

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Choosing Channel Partners

• Identify potential partners• Establish partner relationship• Set goals• Train partner• Provide sales/marketing support• Minimize partner conflicts

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Marie Seipenko

Evaluating Your Sales Process

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Evaluating Your Sales Process14

Lead Generation

Prospecting

Customer/Client Contact

Negotiating

Closing the Deal

5 Steps to Sales

Customer service is key throughout the sales process.

Evaluating Your Sales Process: Activity 15

5 Steps to Sales

Using the Sales Process Assessment worksheet, write down the methods you are currently using for your strongest and weakest steps Then include some challenges you face for each.


Step 1: Lead Generation

Marketing can generate leads:• Advertising• Online (website, search engine optimization, pay-

per-click ads)• E-mail• Social media• Client/customer referrals• Trade shows• Direct mail• PR

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Jennie Dundas & Alexis Miesen


Step 2: Prospecting

Prospecting reaches out to leads using:• Phone/cold calls• Email• In-person networking• Social networking • Direct mail• Trade shows• Referrals

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Step 3: Contact

• Qualify the prospect

• Set initial meeting

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David Lomakin


Step 4: Negotiating

• Know your goals• Determine customer needs• Be prepared • Determine deal breakers• Create win-win situation• Build relationship

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Douglas S. Cavanaugh Sr.


Step 5: Closing

Tactics for Closing:• Understanding• Quality• Identify significance/value of product• Empathy• Know when to stop

Obstacles to Closing:• Price• Not decision-maker• Product/service not needed• Fear• Timing

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Evaluating Your Sales Process: Discussion

Step 5: Closing

Can anyone share closing challenges that you commonly come across, and/or closing tactics that have worked?

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Customer ServiceAcquiring a new customer costs 5 times more than keeping an existing one*

• Follow up• Resolve problems• Build relationships• Use CRM tools (Plaxo, Salesforce, Zoho) to

maintain customer history• Get referrals/testimonials• Sell additional products/services• Stay in touch*Source: Gallup

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Katrina Markoff

Your Sales Team

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Your Sales Team24

Who Is Your Sales Team?

• You (Owners)• Existing Staff (performing other functions)• Your Website (e-commerce)• Dedicated sales staff• Outside consultants• Others?

Your Sales Team25

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• Set measurable goals for each step of the sales process

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• Know your ideal target customer

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• Measure outcomes constantly and adjust accordingly

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• Apply best practices techniques to sales process

Setting Sales Goals

Your Sales Team

Match Skills to the Sales Process

• What steps in the sales process are the most important for your business and why?

• What skills do your salespeople need to succeed at those steps?

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Your Sales Team

Sales Team Options

• Telemarketing• Dedicated Sales Team• Manufacturer's Reps• Retail Associates

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Motivating Your Sales Team

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Motivating Your Sales Team29

1 • Set goals – for business and salespeople

2 • Performance measurements – for sales

3 • Payment formula – keep it simple

4 • Minimum base pay – higher for new employees

5 • Rules

Creating Your Sales Compensation Plan

Motivating Your Sales Team30

Commission-Only:

§ Motivates salespeople§ Paying for results§ May be insufficient for new

salespeople§ Can alienate salespeople§ Focus on quick sale§ Price-slashing§ Best for short sales cycle

Salary-Only:

§ Can demotivate salespeople

§ Eases learning curve for new rep

§ Creates teamwork§ Invested in company goals§ Suited for long sales cycle

Commission vs. Salary


Balancing Salary and Commission

Commission can range from 20% to 85% of salary

Factors to consider:• Sales cycle• Job duties• Tenure• Experience• Industry standards

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Bonuses• Additional incentive beyond commission

• Typically paid at year-end

• Graduated levels

• Keep it simple

• Make it motivating

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Sales Incentives• Non-monetary

• Contests or compensation

• Set clear goals and rules

• Best for short-term results

• Make it meaningful

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Benchmarking Sales

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Benchmarking Sales

Why Benchmark?

Benchmarking = Comparing Performance benchmarking vs. Process benchmarking

Benchmark:1. Your past history2. The competition3. Your industry

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Benchmarking Sales36

Determine processes/ measures

Gather data Assess data Adjust process/goals

4 Steps to Benchmarking

Benchmarking Sales

Using Technology to Enhance Sales

Customer Relationship Management (CRM):• Differs from Contact Management• History of interaction• Share information• Create reports/forecasts• Spot trends• Time management• Consistent sales process

Choosing CRM Solutions: Simple and Scalable

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Helpful Resources

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Helpful Resources

Suggested Contact Management/CRM Software

• Infusionsoft CRM (www.infusionsoft.com/integrated-contact-manager)

• Intuit QuickBase (http://quickbase.intuit.com)• Oracle CRM OnDemand (www.crmondemand.com) • Plaxo (www.plaxo.com)• Sage CRM Solutions (www.sagecrmsolutions.com) • Salesforce (www.salesforce.com)• SalesNexus (www.salesnexus.com)• Zoho (www.zoho.com/crm)

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Helpful Resources

Sales Resources

Sales Organizations• Direct Selling Association (www.dsa.org)• National Association of Sales Professionals(www.nasp.com)• Professional Society for Sales and Marketing Training (www.smt.org/)• Sales and Marketing Professional Association (www.smei.org)• Sales Force Effectiveness Benchmarking Association (http://sfeba.com)• Sales Lead Management Association (www.salesleadmgmtassn.com)

Sales Compensation Software• Callidus Software (www.callidussoftware.com)• Makana Solutions (www.makanasolutions.com)• Xactly (http://www.xactlycorp.com)

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Review

• Distribution channels are how the end user gets your product or service.

• There are 5 steps to the sales process: lead generation, prospecting, customer/client contact, negotiating, closing the deal.

• There are multiple ways to form, motivate and train a sales team, depending on the needs of your business.

• Benchmarking sales will allow you to see your progress.

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Next Steps

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Next Steps

• Finish the Sales Process Assessment worksheet• Review the With Your Mentor handout for topics to discuss with

your mentor

Visit www.score.org for more information about other SCORE resources

Help Us Help You

Please answer the following questions:

1. On a scale of 0 - 10, how likely is it that you would recommend this workshop to your friends and colleagues?

2. What is the primary reason for the answer you just gave us?

3. What is the most important improvement we could make that would make you rate us closer to a 10?

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Good Luck!

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simple steps for growing your business – sales · simple steps for growingy our business 1...

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