Part II SALES FORCE ACTIVITIES

Part IISALES FORCE ACTIVITIES Chapter 3: Sales Opportunity Management

Sales Opportunity Management Generating New Accounts Managing Existing Accounts Sales Versus Profits Personal Time Management

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

Table 3-2Sales Force Costs Across Selected Industries Industry Sales Force Costs as A Percentage of Sales ------------------------------------------------------------------------------------------------ Banking 0.9% Business services 10.5 Chemicals 3.4 Communications 9.9 Construction 7.1 Electronic components 4.9 Electronics 12.6 Fabricated metals 7.2 Food products 2.7 Instruments 14.8 Machinery 11.3 Manufacturing 6.6 Office equipment 2.4 Paper/allied products 8.2 Pharmaceuticals 5.6 Printing/publishing 22.2 Rubber/plastics 3.6 Wholesale (consumer) 11.2

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

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

Figure 3-1: Portfolio Model 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 3-2: 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 3-3: The Sales Funnel

Figure 3-4: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 3-5: Time Management

Part II SALES FORCE ACTIVITIES