| v> | | | | need any sales prospecting training because he |
| Is Sales Prospecting Training a Key Element to | | | | was satisfied with his System’ of |
| Your Sales Results? | | | | prospecting. That system’ was |
| Have you identified the key sales performance | | | | mandating his sales reps to at least 100 dials a |
| indicators that are dragging you down? I conduct | | | | day’. I asked him what appointment |
| Sales Performance Evaluator web-cast | | | | conversion ratio he achieved when sales prospect |
| meetings across the country to help sales | | | | conversations occurred with a targeted sales |
| management diagnose were they are weak and | | | | prospect.He advised me that that did not matter, |
| were they are strong, all pointing to unique | | | | the important part was getting in the |
| systematic training processes to gain more sales | | | | dials’ each day. That’s like telling an |
| revenue in less time. The evaluation is based on | | | | Indy driver not to worry about the lap times
|
| real sales performance numbers in line with | | | | just make sure you get in the laps’. |
| revenue objectives, so it’s ultimately an | | | | You see, none of the above activities qualify as |
| objective review versus a subjective approach. | | | | an essential core competency. Since they are not |
| My findings show that 90% of the time the sales | | | | directly linked to revenue, these activities would |
| force under the 'sales performance microscope' is | | | | fall under the category of data base procurement, |
| not achieving enough new sales appointments to | | | | or what I call a Targeted Selection |
| have a right to win’ in line with their | | | | Process.A target list is certainly a necessary |
| sales objectives.Simply put, they are not putting | | | | ingredient in the sales process, but it would not |
| enough logs on the fire to keep it burning. | | | | qualify as an essential competency. |
| Simply put, they are not putting enough logs on | | | | There are (3) sales performance opportunities |
| the fire to keep it burning. | | | | that Sales Prospecting Training can measurably |
| Does your sales force put enough logs on the | | | | help your sales results. These same sales |
| fire’ in line with your current key sales | | | | performance opportunities can turn into sales |
| performance indicators and your sales objective? | | | | performance issues reflecting negative factors |
| If they are not, you should be looking closely at | | | | that adversely affect a sales organization’s |
| what I term the #1 sales competency in sales; | | | | culture and sales performance. |
| the conversation-to-appointment ratio. | | | | One is Sales Employee Turnover. There is a |
| Let’s take a close look at the | | | | measurable hard dollar cost to turnover, and |
| Conversation-to-Appointment ratio. This is the | | | | much of it is caused by not generating enough |
| number of conversations it takes to generate a | | | | at bats’ to have a chance to succeed. |
| single sales appointment. Most sales organizations | | | | Another is New-hire training. The main objective |
| do not measure, let alone emphasize or train | | | | of new-hire sales training should be to facilitate |
| around the Conversation-to-Appointment | | | | the new sales hire to full sales quota by a |
| Ratio. Most do not know what it means. | | | | pre-determined amount of time. But is it? Is |
| Consider your own Conversation-to-Appointment | | | | yours? Are you able to walk a new sales |
| Ratio. I’ve asked hundreds of sales | | | | employee through a step-by-step process to |
| professionals, What is your | | | | ramp-to-quota by month X’? |
| conversation-to-appointment ratio? The typical | | | | What about sub-par sales quota attainment? |
| answer (after a bunch of back and forth) is about | | | | What percentage of your sales reps are achieving |
| 10-25 prospecting conversations will yield 1-2 sales | | | | sales quota per month? Of the ones that are not, |
| appointments. That’s a 4-20% success | | | | what key sales performance competency, if |
| ratio. | | | | trained to effectively, would allow a higher |
| And that equates to a lot of prospecting | | | | percentage of sales reps to meet that objective |
| conversations and a lot of time to achieve enough | | | | more often?Many times the key sales |
| new business sales appointments each week to | | | | performance competency is setting new sales |
| be successful. In fact, the sales management | | | | appointments; more often, more targeted and in |
| leaders that have gone through my sales | | | | less time. |
| performance Evaluator sessions spend | | | | Another way to put it is that Your Front End |
| 40%-60% of their time on sales prospecting | | | | Activity is Directly Proportionate to Your End |
| activities and are still coming up short on their | | | | Sales Results. |
| sales appointment generation barometer. | | | | Here is a perfect example of how it played out |
| So, why is the Conversation to Appointment | | | | for a sales force of 120 reps. After a diagnostic |
| Ratio a core competency? First, it is a skill set | | | | evaluation of their key sales performance |
| that is measurable around an essential sales | | | | indicators in line with the sales objective, it was |
| competency, with the objective of introducing | | | | determined the clearest path to improvement |
| some education or value to a specific individual or | | | | was to focus on setting new appointments |
| group. It initiates your selling process. Whether | | | | — getting more opportunities in front of |
| you are initiating a conversation by telephone, | | | | targeted sales prospects. They did it by training |
| physically cold calling, chatting in the elevator, or | | | | to an improved appointment conversion ratio so |
| yelling from rooftop to rooftop, it is a critical | | | | they could achieve more sales appointments in |
| communication skill that is essential to a | | | | less time. The results speak for themselves. |
| salesperson’s success. | | | | Over an eight-month period, they increased their |
| Bottom line, if you’re not proficient at | | | | Conversation-to-Appointment Ratio from 8% to |
| communicating the Business Reason to | | | | 80%. Their average number of new business |
| Meet’ to a business person, you’ll | | | | appointments per rep increased six-fold. And they |
| continue to strike at home plate and never get | | | | enjoyed a 507% increase in unit sales.More sales |
| the chance to run the bases. | | | | reps reached quota more often, new hire sales |
| Your required new appointment sets per week | | | | reps ramped to full quota in less time and sales |
| are a by-product of your current performance | | | | employee turnover due to low sales appointment |
| numbers and competency ratios. Your | | | | activity dropped off the map. |
| conversation to appointment ratio is directly linked | | | | So whether it’s meeting your overall sales |
| to how much time you spend acquiring those | | | | revenue objectives, reducing the hard-dollar cost |
| appointments. | | | | of sales employee turnover, or ramping your |
| Most sales organizations measure and manage | | | | new-hire sales reps to quota in less time, take a |
| around activities such as: | | | | close look at your key sales performance |
| - Collect 50 business cards per day- Knock on 35 | | | | indicators to see where your ship is leaking, and |
| doors a day- Cold call’ 25 businesses a | | | | plug the main leak with targeted sales |
| day- Complete 100 dials per day | | | | performance and sales skill improvement training. |
| I once had a sales executive tell me he did not | | | | |