Essential Sales Team Management Strategies
Participation rate is the percentage of sales team members who are at or above plan. For a sales team, canada goose outlet boston participation rate is easy to calculate. On a team of ten people where four are above their sales plan on a YTD basis, the participation rate is 40%.
Participation rate is a statistic that rarely scrutinized. Why? Sales managers are measured for making their quota. If the quota is $100 million, the sales manager’s goal to get each sales person to deliver an average of $10 million. Some will produce $15 million and others will produce canada goose london uk $5 million; the sales manager only needs the total to add up to $100 million. The sales manager is incentivized to keep buy canada goose jacket cheap average performers. A sales person who only delivers 50% of their quota canada goose outlet in winnipeg is better for the sales manager than the 0% they would contribute if the sales manager let them go.
Research reveals that a participation rate of 60% or less will give sales managers a canada goose outlet store quebec 10% chance of making their revenue plan. Sales managers must aim for a high (70%) participation rate to have a good chance canada goose mens uk of making plan, although it is not guaranteed.
Given this, why do sales managers tolerate poor cheap canada goose performance? What stops them from having tough conversations? Sales managers are nice. They do not want to rock cheap canada goose the boat. canada goose outlet paypal Their strategy is hope.
A sales rep’s canada goose outlet uk sale performance can be evaluated on two criteria canada goose outlet germany behavior and results. Assessing whether a sales rep is or could be delivering results is fairly straightforward it’s a math problem. There are four performer categories a sales manager works with:
High Performers = Deliver results + behave correctly
Coachable Performers = Behave correctly but results are not 100% yet
Tough Performers = Deliver results + behave poorly
Poor Performers = Poor results + poor behaviors
In an ideal world, a sales manager would have 100% High Performers. Neat concept,
most likely not going to happen. What is the next best thing? One hundred percent High Performers and Coachable Performers. This is attainable but it’s not the norm.
Most leaders canada goose shop prague will have some Tough canada goose shop review Performers and some Poor Performers. Imagine having ten canada goose elrose parka uk direct reports with two in these groups. Not bad, manageable. Now imagine four out of ten. Life is tougher and tough moments happen on a daily basis. At six out of ten, it is probably tough to get out of bed in the morning.
Related: Transform Your Sales Force by Creating Specific Expectations
Ongoing management of performers involves monthly (minimum) One on Ones, observational coaching with feedback, sit downs to try and help all the day https://www.kabbalah-arizal.nl to day routines to try and lift behavior and results. When these fail to work, that’s when it’s time for the performance conversation, which has five key steps:
Set a clear standard and set milestones of performance for the direct report.
Inform the direct report where they are not meeting the standard and set milestones.
Give the direct report the opportunity to meet the standard and set milestones.
Offer assistance to meet the standard and set milestones.
Advise the direct report of the consequences of not canada goose outlet black friday meeting the standard and set milestones.
Sales managers know how to do this the issue is getting up the nerve. Sales managers need to have the conversation as soon as needed putting it off spares no one. Sales reps canada goose uk sale black friday who want to be with you will step it up and improve. Those who are not capable/not interested will show very canada goose youth uk quickly (weeks not months) after the performance conversation. If things still don’t improve, the sales manager can move to the final warning, consulting with HR to effectively handle this and how to go your separate ways if that is required.
Related: The 7 Deadly Sins of Sales Management
Kevin Higgins is CEO of training organization DoubleDigit Sales, recognized by Selling Power as one of the top 20 sales training companies in North America and as one of Canada’s Top Small and Medium Employers for 2014.