8 questions to reignite sales growth

8 QUESTIONS TO

REIGNITE SALES

GROWTH

CHANNELINSTINCTS.COM

A guide to provoke

thought and ask questions

to help drive profitability in

a resource constrained

environment.

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• Strategy is critical to long term success

• Within your business you have more ideas on what

you should be doing than resources

• Proper selection and prioritization is paramount

• Assessing where you are and

determining where you want

to be is the first step

STRATEGY IS ABOUT CHOICES


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EIGHT CRITICAL QUESTIONS

1. How do our products compare?

2. How does our price compare?

3. How does our cost compare?

4. How does our service compare?

5. How does our marketing compare?

6. How effective is our sales force?

7. How does our sales penetration vary by region?

8. Where should we rate in 2 and 5 years vs.

competition?


START THE DEBATE WITH

POINTED QUESTIONS

• Every turnaround has a common theme that

the status quo was pushing the business in the wrong

direction − the need to change was obvious

• Another common theme? That the current situation is

someone else’s fault; another department, the past

leader, the dog who ate your homework…

• The hard part is getting past the finger-pointing

You need to be intensely honest in your assessment

HIGH LEVEL SCORECARD

Area Current

Status

Impact of

Improvement

Focus Level 2 Year

Goal

5 Year

Goal

Product Medium Improve

Price High Maintain

Cost High Focus

Service Low Maintain

Marketing Low Improve

Sales Team

Effectiveness

Medium Improve

Geographic

Coverage

High Focus

Poor Sub-Standard Average Advantaged Superior

At the end of this process you should have a clear picture of:

1. Where you are today

2. What will make a difference

3. Where you should direct your resources


PRODUCT SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Product Medium Improve

Product

Segment 1

Product

Segment 2

Product

Segment 3

Product

Segment 4

Your Firm

Competitor A

Competitor B

Competitor C


Specific comparisons quickly highlight strengths and weaknesses:

1. The strengths should be incorporated into your marketing

2. They should be on the tip of every salesperson’s tongue

3. Don’t rush into the trap of automatically fixing sub-standard areas


Product Segment 1

$150M, 20% CAGR

20% Share

Product Segment 2

$30M, -20% CAGR

30% Share

Division A

95%

Division B

15%

Family E – 25%

Family G -100%

Family F - 75%

Product Segment 3

$200M, 5% CAGR

40% Share

Family J – 80%

Family K – 20%

Family H – 40%

Family I – 60%

Family A

Family B

Maintain

Focus Milk

Exit

Family D

Family C

DETERMINE YOUR FOCUS AREAS

Product Segment 4

$120M, 2% CAGR

40% Share

Family N – 90%

Family O – 10%

Family L – 80%

Family M – 20%

Division A

80%

Division B

20% Division A

60%

Division B

40%

Division A

50%

Division B

50%

Next

Generation

Product

A market map that shows how large the category is and how it is

trending is key understanding where you want to be

This analysis can also be

developed at more granular levels

and can be used to map other key

variables such as price and cost.


PRICE SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Price Medium Improve

Product

Segment 1

Product

Segment 2

Product

Segment 3

Product

Segment 4

Your Firm Monitor Share Opportunity to raise

prices?

Competitor A

Competitor B

Competitor C

Low High Correct

Balance share gain with ability to raise prices:

1. Opportunities to raise prices on products within segments

2. Look for areas where an entire segment may be raised

3. Watch segments where you have a price premium


COST SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Price Medium Improve

Product

Segment 1

Product

Segment 2

Product

Segment 3

Product

Segment 4

Your Firm

Competitor A

Competitor B With low prices &

high cost, they

should be looking to

raise prices

Competitor C

Fully evaluate your cost position : 1. Evaluate Material, Labor, Overhead, Distribution, SG&A, Inventory, Terms

2. Are customers paying for the features that cost more than competitors?

3. Are the premiums being featured by marketing and sales?

4. Should your cost position change your go-to-market strategy?



SERVICE SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Service Medium Maintain

Fill Rates Ease of Doing

Business

Rep

Training

Rep

Knowledge

Speed to “Make

it Right”

Your Firm Fix this area

Competitor A What happens if

they fix their SC?

Competitor B

Competitor C

Service is broader than product delivery:

1. Is your organization easy to do business with?

2. Do customers or consumers have to fight to get issues addressed?

3. Who is monitoring social media?



MARKETING SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Marketing Low Improve

Advertising Packaging Website Product

Presentations

Social

Media

Catalog Product

Launch

Your Firm Fix Shift

resources?

Comp A

Comp B

Comp C

Are your resources being effectively deployed:

1. Should traditional materials and media be replaced by digital?

2. Is your story relevant and consistent?

3. Are you seeing a difference in your sales?



SALES SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Sales Medium Improve

Headcount Territory

Alignment

Training Incentives Product

Knowledge

Solution

Based

Selling

Your Firm Develop training

material for new

products

See Training

Comp A

Comp B

Comp C


Look beyond the standard metrics:

1. How long does it take a new salesperson to get up to speed?

2. Are some salespeople more proficient at selling some products?

3. Are the hustlers out earning the “premium” territory?

4. How would your customers rate them?


GEOGRAPHIC SCORECARD

Area Current

Status

Impact of

Improvement

Relative

Focus

2 Year

Goal

5 Year

Goal

Geographic High Focus

United

States

Canada Latin

America

Asia Eastern

Europe

Western

Europe

Other

Your Firm Need to

pass product

approval

Study

Entrance

Comp A

Comp B

Comp C Could changing

cost position push

them out of US?

Explore on a more granular level and roll it up:

1. Why do regional differences exist?

2. What level of focus is being put on low share areas?

3. How much investment would it take to gain share in low areas?



BRINGING IT TOGETHER

Each functional area self evaluates, but presents to all • Have open honest conversations

Gain consensus on the high level scorecard

• It will be more difficult than you think!

Define what needs to be accomplished to make

the changes

• Spend time on focus areas first

Determine resource constraints and gaps

• Strategically prioritize

Agree on what is not going to be done!


KEY OUTPUTS EXAMPLE

1. Develop products in high growth segments by

moving resources from non-strategic segments

2. Raise price in segment where market low-baller

has a cost issue

3. Give authority to fix customer issues to lower level

of organization

4. Shift resources to launching products

5. Fix the website

6. Develop training materials for the sales force

7. Adjust product to pass key standards


KEY QUESTIONS

• Does your organization have this level of

understanding and harmonization today?

• Should this or something similar feed into your current

business planning process?

• Who in your organization could facilitate or lead this

effort?

• How much could this process generate or save us?


17

CHANNELINSTICTS [ Accelerating your path between ideas & actions ]


Greg Bonsib is a marketing expert and consultant who has worked with

various sales teams and customers such as Newell Rubbermaid, Owens Corning,

SentrySafe, Norandex, Reynolds Building Products and others to launch new products

and programs. He can be reached at [email protected].

This PowerPoint is adapted from the Channel Instincts blog at channelinstincts.com.