Dear Entrepreneurs - Who is your Sales Manager?

The love for sales

Sales as a subject, function and department is probably the most dear to entrepreneurs and business owners. Sales is a validation of the business doing well or not, it gives a sense of acceptance for the product & services offered by a company. Because of the importance (rightfully so) of this function more often than not the business owner holds the reigns of this department, they want to be in the “know” of the sales. Though it is not always prudent to lead sales as an owner, when you have so many other responsibilities.

The Selling process

Sales happen in a business because they started doing sales in a certain way and it just stays that way. Changing the sales process with current times scares a lot of owners because, either they don’t necessarily understand what has to be done, and/or holding on to legacy processes has its own charm, because sales are still happening.

When asked who is the sales manager? Almost all entrepreneurs raise their hands, it is good in a way, though it also sets the alarm bells for dependency and control. There is a certain high one gets when you close an order, and the entrepreneur is no different, it’s a moment of glory to show the team “how it’s done". Unfortunately, they seldom invest in transferring that knowledge and skill to their teams, and when sales are tanking, blame game, finger pointing and name calling sets in.

Sales Management

 Very few organisations in the SME sector actually focus and invest in this area, they feel what’s the need, we have salespersons, they meet customers, sales are happening, then why spend money and time on something that apparently isn’t broken. It is perfectly fine if as an entrepreneur you want to stay where you are, though if you carry a growth mindset then investing in sales management is like investing in the engine of the organisation.

So what exactly is Sales Management?

Simply put, it is an organised and scientific way of doing sales. It primarily has the decision making/ Choice elements such as, but not limited to :-

1. The Selling Process
2. Territory Allocation
3. Customer Allocation
4. Sales Targeting
5. Sales Reporting
6. Sales incentives
7. Customer Relationship Management (CRM)
8. Sales Organisation Structure
9. Sales Channels – Direct, through Partners
10. Sales Analytics

Now, all of the above are definitely thought of and taken into account in most organisations, though there is seldom deep thought and discussion about them. They are usually the decisions taken by the entrepreneur, without any clear process that can be understood by all. People who join newly, learn on the job, there is no sales induction process. Each sales person follows their own sales process while meeting customers and as long as sales are happening no one bothers to question it.

One of the biggest reasons for lack of sales management is, that the business owner doesn’t want to hire a professional sales manager, because

a) It costs money

b) What if the sales manager fails?

Both are valid reasons, but when you start looking at a sales manager as an investment for growing your business, this simple mindset shift can propel your business into a growth trajectory.

Sales management is a functional expertise that takes years to develop and is a value add for any organisation. Just imagine how much money you must be losing on the table when your sales person isn’t able to spot an opportunity or handle sales objection. These things never reach the entrepreneur, so you would never really know what you are missing. Sales management can most certainly plug these holes.

Another malaise that businesses are gripped with is the thumb rule of “let’s grow by 15-20% over last year”, it's called the trap of the rear view mirror, no doubt one has to take into consideration market conditions though one can safely accept that market conditions don’t change all of a sudden, we have time to adapt, we just don’t pay attention to the signals and in absence of sales management structures, the signals are never heard.

Two issues stem from the trap of the rear-view mirror

1) You would be growing much less than the market is growing

2) You would be forcing the sales team to produce a growth when there isn’t much opportunity to grow.

Either way the results aren’t good. So what can you do to build on your current processes….

As a starting point, here are 6 Critical things you can do: -

1.    Analyse your sales numbers – Slice and dice

a.   Product wise

b.   Region wise

c.   Sales person wise

d. Customer wise

2.    Question the current sales process – Look from an outsider’s point of view

a.   Why are things the way they are?

b.   Should they remain the same?

c.   If yes, what is the key reasons?

d.   If no, what should be changed?

3.    Examine the sales process in action – Deep dive into the market

a.   Attend customer calls and observe your field force. (don’t get tempted to show how it is done)

b.   Ask customers – Why do they buy from your organisation? Or What stops them from buying?

c.   Make notes of the gaps in the sales process currently followed

d.  Appreciate the good work the field force is doing

4.    What are you incentivising? – Remember ants travel to the sugar

a.   Is it just sales growth over last year?

b.   Is the incentives' product wise?

c.   Is an incentive allocated to add new customers?

d.   Is an incentive allocated to grow old customers?

e.  Think of parameters important to your business and incentivise those.

5.    Hire a sales manager if you don’t have one – Let the professional do the job

a.   Create a job description

b.   Agree on traits and attributes of a good sales manager for your business

c.   Interview for attitude, thought process and ability to grow and not just for past successes & what’s written in the CV

d.   Seek references before hiring

6.    Coach and guide the sales manager – Set them up for success

a.   Set clear expectations

b.   Induct the sales manager into the vision of the organisation

c.   Allow freedom to try new things

d.   It takes time to change old ways, so be patient.