The value of the business is a function of top line
revenue, market potential and the ability to
systematically capture (through right processes)
more revenue (customers). The obvious item I did not
include is profitability, mainly because we focus
our efforts primarily on growth and because there
are numerous paths to profitability. Our goal is to
help companies grow revenue. It is easier to address
profitability with increasing sales and loyal
customers than when both are in decline.
The three items above, top line revenue, market
potential and the right strategy for realizing that
potential revenue are not only key to creating the
wealth of the business but are also critical in
hiring and retaining quality sales people.
This involves identifying prospective customers
(plants and other facilities by industry, etc.) in a
given area, analyzing historical sales data and
determining the dollar value of the target market.
Not only does this tell you the potential of the
business but it also tells a sales person what their
future looks like.
This means knowing the market potential data and
doing something about it. Sales strategy involves
everything in your business that reaches out to
revenue. Sales people are a key part of this but
they can also get between you and your revenue, just
like bad customer service or poor product quality.
If you have a sales person who is "coasting" on
existing customers and not aggressively prospecting
for new business, he/she is getting between you and
your new customers.
We separate sales strategy into two categories,
Inside Selling and Outside Selling. Inside Selling
involves customer service and inside sales
personnel, the people who are in your office
everyday interacting with new and prospective
customers. It also includes certain marketing
activities like direct mail as well as your web
presence. Outside Selling involves the sales people
who directly interact with prospects and customers.
As you get a better understanding of your market
potential, it is important to determine what part of
that can come from inside and outside. If most of
your sales have to come from person to person
contact then that is where most of the future
emphasis should be. However, if you can enhance some
of the inside sales activities that you have direct
control over to generate interest, then there should
be a balance to your sales strategy.
How you compensate a sales person is also part of
your overall sales strategy. Compensation should
take into consideration the market potential
dollars, the tools available to sell effectively and
the support necessary to meet sales objectives.