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Part II SALES FORCE ACTIVITIES. Chapter 3: Sales Opportunity Management. Sales Opportunity Management. Generating New Accounts. Managing Existing Accounts. Sales Versus Profits. Personal Time Management. What Creates Satisfied Customers?. Mergers and Acquisitions. 10%.
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Part IISALES FORCE ACTIVITIES Chapter 3: Sales Opportunity Management
Sales Opportunity Management Generating New Accounts Managing Existing Accounts Sales Versus Profits Personal Time Management
What CreatesSatisfied Customers? Mergers and Acquisitions 10% Acquiring New Customers 42% Introducing New Products 15% 42% Increasing Business with Existing Customers Figure 3-1: What’s the Best Way to Grow?
Prospect Profile Disposable Medical Supply Distributor • Multiple-practice physician office • Internal medicine, family practice • Suburban location • New practice -- less than 5 years • Good credit history • Currently purchases from a full-service distributor
Developing a Prospect List 1. Direct Inquiry Advertising Direct Mail Trade publications Trade shows 2. Directories – Thomas Register 3. Referrals 4. Cold Canvassing
Qualifying Prospects 1. Needs for your products/services 2. Authority to make purchase 3. Credit rating & ability to pay 4. Rating scale applied to characteristics by each salesperson
Table 3-1Computing the Cost per Call for an Industrial Products Salesperson
Sales Opportunity ManagementKey to Productivity Breakeven Sales Volume (Cost per Call) x (Number of Calls to Close) Sales Calls as a % of Sales
How Dell Achieves Selling Efficiencies Traditional Model Internet Model 100,000 Catalog Drops 100,000 Website Visits 5,000 Calls 10,000 Calls 2,000 Orders 500 E-Orders 1,750 Orders
Customer Break-Even Analysis Average Sales Volume Per Month $9,784 $8,153 C $6,522 $4,891 $3,261 A $1,630 B 1 2 3 4 5 6 Number of Sales Calls Per Month
Table 3-3: ABC Account Classification No. of Total Sales Total Total calls Sales ($) Account Accts. Accts. (000) Sales Per Classif. Per Call Classification (1) (2) (3) (4) (5) (6) A 21 15% $910 65% 105 $8,667 B 28 20 280 20 140 2,000 C 91 65 210 15 455462 Totals 140 100% $1,400 100% 700 $2,000 (Avg)
Table 3-2Selected Statistics on Cost per Call and Number of Calls Needed to Close a Sale
Figure 3-2: PortfolioModel Competitive Position Weak Strong Core Accounts Accounts are very attractive. Invest heavily in selling resources. Growth Accounts Accounts are potentially attractive. May want to invest in heavily High Account Opportunity Drag Accounts Accounts are moderately attractive. Invest enough to maintain current position. Problem Accounts Accounts are very unattractive. Minimal investment of selling resources. Low
$20,000 Dollar Sales per Quarter $10,000 1 2 3 4 5 6 Number of Sales Calls Per Quarter Figure 3-3: Number of Sales Calls Response Function
17 7 8 2 1 3 6 5 21 15 23 22 13 24 11 10 18 9 14 12 4 19 20 16 Unqualified 50% closure probability Qualified 75% closure probability 90% closure probability Best few Figure 3-4: The Sales Funnel
Figure 3-5:How Salespeople Spend Their Time Service Calls Selling Face-to-Face Administrative Tasks Selling over the phone Waiting and Travel
Importance High Low Emergencies Time Wasters High Urgency Personal Growth Recreation Low Figure 3-6: Time Management
Time Allocation • As a salesperson for Strength Footwear, Inc., you have been very successful. • Your commissions are well over $70,000 a year. Demand for your product line is very strong, but so is the demand on your time. • You work your territory 220 days a year and can make 4 calls a day. The maximum number of times you need to see any account is every other week, but you need to call on each account at least once a quarter. • To help you allocate your time according to sales results, you have gathered the following information on customer sales:
Time Allocation: Customer Sales Strength Footwear, Inc. • Develop and justify a call schedule for allocating time across the 110 customers in your territory. • What additional information should you consider in allocating your time?
