By its very definition, Sales Management is a “people business” because the main costs of any sales department (excluding the channel margins and schemes) are the “people related” costs of
- People salaries and benefits
- Travel and allowances
- Costs of meeting, entertaining and presenting to the customers
- Costs of recruiting, training, communicating, motivating the sales force
Good sales managers get “more bang for their buck” by making the above costs more productive. They do this by
- PEOPLE MANAGEMENT : Picking better people, inducting and training them better. And thereafter organizing their coverage in such a way that they waste less time on administrative chores & travelling; and more time in front of the customers so that they can create value for the customers and revenue for the company.
- CONTACT MANAGEMENT : Ensuring that the right salesperson spends the right amount of time with the right customer by matching costs and personality of the salesperson with the potential and type of customer. And when they talk to the customer, they impress the customer better with their superior knowledge, demonstration, presentation, closing skills and relationship skills.
- PERFORMANCE MANAGEMENT : Meeting, communicating, motivating and directing their salespersons so that not only sales targets are achieved but even the relationship assets in terms of customers and the manpower assets in terms of existence of skilled leaders are created which lay foundation for the future growth.
All these three - people, contact and performance - is achieved by the operating sales managers through creating a sales force having the right
- Personality
- Knowledge
- Attitude
- Behavior
- Motivation
- Habits and processes
- Customer coverage plan
- Performance metrics and goals.
The word “right” used above may give an impression that there is “a right sales personality”. Even in our society, there is a stereotype of a “sales personality” variously portrayed as extrovert, glib, articulate, manipulative, irresistible, dynamic, attractive, sporty, aggressive etc. In short, the popular impression is that either you have "it" or you don't. The truth is that there is no single “sales personality”. The real issue is matching the right personality with the right role. Virtually any personality is the right person in certain sales situations whereas wrong in certain other situations.
TYPING BASED ON WHETHER HUNTER OR FARMER
It is useful to think in terms of salespersons in terms of whether they are “Hunters” or “Farmers”?
(a) A Hunter gets his high when he “hunts” out a new opportunity : they are often consultative sales people who innately assess an opportunity (even when there doesn’t appear to be one) within a prospect, and find a solution within your offering that meets the specific need. They are networkers. They are independent. They generate buzz and excitement. But, they MAY NOT BE good at follow-up and focus. Typical sales roles: Account Executive, Field Sales Rep, Business Development Manager.
(b) A Farmer cultivates relationships and opportunities, typically within existing accounts : they are the salespersons who turn a customer from good to great by the nature of their relationship and the loyalty they gain from their efforts. They nurture. They collaborate. They are team players. BUT THEY MAY NOT be good at prospecting. Typical sales roles : Account Manager, Customer Service Rep, Inside Sales Rep.
TYPING BASED ON CREATIVITY IN SELLING
These are based on the sales funnel :
STAGE 1. Prospecting
STAGE 2. Planning
STAGE 3. Contact
STAGE 4. Presentation
STAGE 5. Handling objections and negotiations
STAGE 6. Closing
STAGE 7. Transacting
STAGE 8. Installing and commissioning and training
STAGE 9. Post sales contact and CRM
In the order of least to most creative they are
1. DELIVERY SALESMAN : who merely executes a given order : fetches the product, packs it, loads it, transports it, unloads it, does minor documentation etc. He works mainly at stages 7 and 8. The responsibility for “creating the sale” and “closing the sale” is someone else’s.
2. ORDER TAKER : who merely takes the order from the customer on the phone, or across the store counter, or sometimes even by going to the customer site. He is somewhat higher than the previous one but still works at the last stage of 6. He caters to “ready” customers who are already favourably influenced through mass media, doctor, friend, news etc. The responsibility of “creating the sale” is someone else’s.
3. MISSIONARY : Like a typical Pharmaceutical representative, he is essentially a promoter builds rapport, goodwill or knowledge but does not get down to taking the order and transact. He handles stages 1 to 4 and is responsible for preparing the ground for someone else to “close the sale”.
4. TECHNICIAN : Only advises and assists the client - either at the request of the concerned salesperson (technical advisor) at selling stages or at the request of the customer (for repair or installation etc) at post-sales stage. He is responsible to assist someone else to “close the sale”.
5. DEMAND CREATOR : He is responsible for all the stages of the sales funnel and hence is responsible for “creating sales”. If he is selling an intangible product like an insurance policy or an ad campaign; it is a more difficult job than selling a physical product which can be seen, felt and demonstrated.
6. SOLUTION PROVIDER : Everything is the same as before except that he does not sell the product but the performance therefrom. For example, he does not sell a cleaning machine to an industrial customer to keep his office clean but sells the idea that he will maintain the customer’s workplace clean by charging him Rs 3 per square foot. This means that he takes responsibility not only for the machines but the fact that they will work (hence repair), that cleaners will be available (outsourcing to contractors) and that there will be supervision (management).
TYPING BASED ON PRODUCT CHARACTERISTICS
Generally standardised, less expensive, simple products are easier to learn for the buyer to understand and for the seller to explain based on understanding in a short time. Such products are in the consumer field.
Conversely, customized, pricy and complex products are difficult to sell because it involves high level of preparation from the seller’s side and more resistance and ignorance from the buyer’s side. Industrial products are mostly of this type and hence the salesperson required to sell such products needs people who
1. are qualified technically to understand and explain such products
2. are sophisticated enough to deal with corporate executives
3. are patient enough to handle long sales cycles
