Marketing Series Article What is this thing called Sales? ...and how is it changing? by Dick Barnes, Principal, The Freeland Group Marketing consists largely of communications, and at one time many firms considered the "sales" communication to be the final, and most important, communication of all. The "sales" communication involved all that transpired between the customer and the salesperson; from prospecting to the final close and the signing of a purchase contract. It was the culmination of all the efforts of the marketing cycle. Today, wise managers understand that such a moment is just a part of the whole cycle of Marketing. We still concentrate on communications through Promotion, Advertising, Public Relations, and Sales to reach our customers. But now we have expanded our interest in those customers, continuing our communications through our Customer Relations department. We emphasize retaining that customer, caring for that customer, and receiving feedback from that customer so we can come up with future products and services. With that feedback the entire marketing cycle then begins over again, as products are changed or altered to reflect what our consumers are wanting. This helps illustrate why we now think of the entire process as a closed loop; instead of a road that ends with the sale. This change in the dynamics of communication has been aided largely by technology. Technology has also changed the way we deal with the moment that constitutes "the sale." Today, our "sales force" may be a web site with automated ordering features. It might consist of telemarketers, or telephone order takers, or salespeople who stay in touch, make pitches, and receive orders by email. The firm may send out teams of engineers or product consultants led by an account manager. That team will likely be interconnected by computers and wireless phones. They may well have the capability of meeting with one another or a client in real time; even when separated by thousands of miles. Remember how the first Fax machines caused a stir in the sales department. Today you can close million dollar deals over the internet using electronic signatures. What this really means is that there are as many different ways to design and implement a sales strategy as there are firms with products or services to sell. Few companies follow a set template anymore as there simply are few standard situations a template would fit. Creativity and customization can help you make sure your company maximizes its sales potential. But why would any firm consider changing a formula that has been working, sometimes for decades? We should note that some of the most successful firms going today are relatively new. In some respects, starting from scratch can actually be an advantage. One area in which this can be true is in the design of a sales strategy, along with the appropriate tools and sales force to carry out that strategy. A brand new firm, just as an example of where efficiency and savings can be found, might initially be without a sales team to pay for and support. Management will attempt to do as much communicating as possible, and come up with ways of taking orders, before committing to that expense. Normally they will make that first hire when it seems illogical to move forward without a sales crew. They begin with one person, add another, and then others at appropriate milestones until they have all the sales force they need. Because of the new technologies of communication, they will likely add a lesser number of sales people than a similar, but well-established, firm has on its staff. The new firm may decide to narrow a salesperson’s field of activities more than the established firm does. They might do prospecting largely by email, or survey, or market research, leaving the salesperson more time to go face-to-face with customers. They may be particular when choosing their targets, and might concentrate on those consumers that fit a carefully thought out profile. The new firm might use time management systems or processes that are faster and more competitive than those of the older firm. Being new in the market, they can spend more time in front of targeted prospects, rather than in visiting existing accounts. Of course these advantages can be offset by any number of disadvantages. The really important point to be made is that a new company can draw a plan on a clean slate, without worrying about past issues and their existing structure. This gives them the opportunity to study all the resources at their disposal and to pick just those that will give them the most effective mix. The older firm will normally use their present resources, then make deletions and additions as opportunities or crisis situations arise. A crisis may be something as simple as a droop in sales performance, but will usually capture the management team’s attention a lot more quickly than would an opportunity. This is because we all tend to operate in a comfort zone, where we accept present structures and practices, and spend our time putting out the “fires” that seem most immediately threatening. This malaise is just as prevalent in managing our sales strategy as in every other aspect of management. If salespeople could make twice the number of calls on big-ticket prospects, while some other form of “sales force” took over repeat product or commodity sales, just as an example, what would be the impact on bottom line? Do customers appreciate seeing a salesperson face-to-face or having to use a phone to order parts? Do they prefer to see a sales person regarding certain products, and prefer to shop on the internet for others? Do they like to comparison shop on the internet, then e-mail their questions to a salesperson? Can we give people a faster, easier, and less expensive way to buy those day-to-day or commodity items without losing them to the competition? A lot of firms have asked, and answered, these questions. Yours may be among them. But there are plenty more questions where those come from. How about other communications that are a necessary part of selling? Can we make those communications in other ways? Cheaper ways? Faster ways? Ways that will stick in the buyer’s mind longer? Can we concentrate the efforts of our present sales personnel to take advantage of the really dynamic values inherent in face-to-face selling? Do we have to be a brand new start-up firm to look at the entire picture with fresh eyes? Of course not! It just seems easier when we don't have excess baggage cluttering up the view. And does such a review of our sales process mean we need to lay off sales people? Not at all…but it might mean we would discover better ways to get greater results from the resources we have. And those are results we can easily live with. (next article in series) |
