A view on Sales Behaviour

The nay sayer’s claim that advances in technology will displace the
need for field operating salespeople. Nothing however, could be
further from the truth! What has happened is that increased
business complexity, the high risk of inappropriate decision-making
and diminished differentiation between products and services has
increased the importance of sales executives, not as purveyors of
product information, but as effective, professional solutions
providers.
Far from being replaced by technology, the function of selling and
the role of salespeople in the business mix, is taking on even more
importance. If technology has changed anything in sales, it has
enabled salespeople to be more effective. Unfortunately not many
companies have been able to harness the technology effectively.
As a result some organisations find that their cost of sale continues
to escalate and that sales productivity appears to be declining.
Management tend to perpetuate the cycle of sales inefficiencies.
They still hire salespeople who appear to have the “gift of the gab”;
and they still believe that “having strong personal relationships” is
all that is required. These managers live in the hope that these
characteristics will generate more business so they exhort, cajole
and remunerate salespeople almost exclusively for product value /
volume.
And when these fail to deliver the expected results they
complain that sales behaviour is not professional; that their sales
teams are less productive.
The reality is that a misguided understanding of the role of selling
in the business mix and inappropriate sales support structures
have resulted in many companies finding that the benefits of
technology do not automatically reduce the cost of sale, nor do
they, on their own, result in increased sales productivity.
Whereas the measure of almost every other function in the value
chain has to be tempered with its inter-dependence on the input
from other value chain functions, selling does not! Concluding an
effective and profitable sale is the direct result of a singular sales
effort – independent of any other elements of the value chain. It is
therefore more easily measurable. The real challenge facing
management is addressing an inherent ignorance of the Sales
Value Atom and measuring performance of sales executives on
output, rather than on input.
Because of this lack of understanding of the Sales Value Atom,
when management find sales performance below expectation or
cost of sale unreasonably high, their immediate reaction is to resort
to one of the six traditional remedies, very seldom getting the relief
they seek….
They increase advertising / promotional spend, hoping that
increased awareness and activity will not only replace good
business practice and common sense, but somehow result in
increased sales performance.
They introduce sales incentives, increasing the cost of sale and
usually gaining only some short-term, hardly sustainable,
increase in sales performance.
They encourage salespeople to develop relationships with
customers in the mistaken belief it automatically improves sales
and that costs will reduce.
They introduce new titles such as strategic and key accounts,
hoping that new titles alone or even their new found
commitment to customer service and support will axiomatically
result in better sales performance.
Another, equally fruitless remedy that management tend to rely
on, is calling their standard products and services “solutions”,
avoiding investing time to develop Unique Selling Propositions
that can be described and hoping that by giving these a new
name they can confuse and perhaps even excite buyers.
And of course, the perennial solution to all sales problems,
introducing sales training.
There is no doubt that these activities definitely improve sales
performance, even if they won’t dramatically reduce the cost of
sale.
But at best, if these remedies provide any benefits, it is only
short-term relief, simply because they usually address the
symptoms and not the real problems – sales behaviour.
After some 5 years of intensive research, working with some 66
companies in a wide spectrum of industries, across the globe and,
backed with 36 years of field experience, Peter Finkelstein of
DaiShõ Marketing – South Africa’s only specialist sales consulting
practice – defined the Sales Value Atom, identifying the real roles,
responsibilities and functions of salespeople in every aspect of the
sales operation.
One of the most important conclusions drawn from the research is
that salespeople, usually paid almost exclusively for sales
productivity, are allowed, at best, to spend only 25,0% of their
available time actually selling.
The research however does show that when sales executives fulfill their entire responsibility in the value atom the cumulative impact of that dedicated time is
exponentially greater than merely devoting 100,0% of sales effort to pushing for business.
Tags: "sales training" "sales advice" "employ sales people" "recruitment agency specialising in sales" "sales people gauteng" "sales staff south africa"
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A sales leader who for over two decades mentored to sales and marketing leaders in growing their market share. A B2B/B2C sales trainer and specialist in the DM/MLM arena. A sales recruitment advisor, to top blue chip corporates.