123 sales management

8/2/2019 123 Sales Management

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123 Sales Management

By Ramy Soliman


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Road Map

Introduction.

Planning, Organizing and controlling.

Staffing and Directing.

Sales Forecasting


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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?


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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.


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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.


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Why should we classify

accounts?

Planning is the key effective time

management.

First step in developing a territory sales planis to analyze the accounts.

80% - 20 % rule.


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How frequent to call on

customer?

Required

calling Period

Estimated Annual

Purchases

Customer

Classification

Every Month250,0001st

Every 2 months150,0002nd

Every 3 months75,0003rd

As time permitsUnder 30,0004th


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Sales Call Allocation Grid.

Attractiveness:-Accounts arepotentially attractive since they

offer high opportunity, but sales

organization currently has weak

position with accounts.

Strategy:- High level of sales callsto strengthen the sales

organizations position.

Attractiveness:-Accounts are veryattractive since they offer high

opportunity and sales organization

has strong position.

Strategy:- accounts should receive

a high level of sales calls since theyare the sales organizations most

attractive accounts.

Attractiveness:-Accounts are very

unattractive since they offer low

opportunity and sales organizationhas weak position.

Strategy:- minimal level of salescalls and efforts made to replace

personal sales call with direct mail.

Attractiveness:-Accounts are

somewhat attractive since sales

organization has strong position,but future opportunity is limited.

Strategy:- moderate level of salescalls to maintain the crt. Strength of

the sales organizations position.

Strong Week


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How to use time effectively?

Make a

list

Of

activitiesThat

should be

performed

Determine the

Priority for

EachActivity

Estimate

How much

Time each

Activity will

take

Develop a time

Schedule

For doingThe activity

Compare the estimated

time with the actual time

spent on the activity


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How to use time effectively?

Select your prospect for tomorrow calls.( F9)

List the names and location of each account.

Carefully route those calls to save travelingtime.

Visualize what is going to take place at each

call.(F5) Organize your data and exhibits to make each

call effective.

Daily Planning


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How to increase the # of calls

they make per day?

Stretching the workweek.

Lengthening the workday.

Using the telephone & the postage service.


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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.


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How can we do work

efficiently?

Daily work plan.

Daily call report.

Weekly summary report.

Monthly expense report.

Other reports.


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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 keyaccounts.


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Example for an Operation

System.Go to Real Ex
http://../SalesSys/index%20-%20Shortcut.lnkhttp://../SalesSys/index%20-%20Shortcut.lnk


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Sales Forecasting

It starts from the sales call cycle.

Based on historical analysis & experience.

Experience is not guesses.

Questions are your weapon.


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Probability to Close

Probability to CloseAnswerQuestion2%You say helloMan answer the door10%Yes I doDo you have a mosquito

problem? ( NEED)35%Yes I canCan you afford it?80%Yes She doesDoes your spouseapprove?98%Yes I willWill you buy it today?

Probability are not guess by the way


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Probability to CloseAnswerQuestion2%Says helloMan answer the door3%In-bound lead.5%Yes I doYard is suitable10%

Yes I do

Do you have a mosquitoproblem? ( NEED)

15%YesHave you comparedsystems?

25%You fit my needsWhat are you looking for ina misting system?

30%Yours seems to be theright system (tangible

explanation)How will you know the

right system/35%YesDo you want it concealed?

Lets try to fill in some gaps


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Probability to CloseAnswerQuestion40%Yes I canCan you afford it?

HIDDEN OBJECTIONSTRIAL TO CLOSE60%Give articulate answersHow would this systemchange your life style?70%Give articulate answersTell me how you entertain

outside?80%Yes She doesDoes your spouse

approve?97%Yes I willWill you buy it today?

100%Checks clears


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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.


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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?


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Forecasting Using Statistics

ResultsChancesEventWin or LoseHead 50%

Tails 50%Coin Toss(single event)Win 5 times

Lose 5 timesHead 50%Tails 50%Coin Toss( Lets flip 10 times)( 10 X50%= 5 times)Win 242 times

Lose 242 timesHead 50%

Tails 50%Coin Toss

( Lets flip 484 times)

( 484 X50%= 242times)


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Sample Sales Report &

forecasting

(A)X (B) X

( $5000 avg. Sales)Number of Prospects(B)Probability to Close(A)$2000410%

15%$3000320%

25%$8,750535%

45%$21,000760%$7,000270%

$41,875Forecast

123 sales management

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