Learn when to take the right actions and be the #1
Since the sales team is the driving force that keeps the business alive, it is crucial that any sales force issues are quickly detected and corrected. Here’s a list of the most common sales force issues. Do you identify with one or more of these?
- High turnover
- Customer service is not efficient enough
- Spending little time on strategically important products
- Not a steady sales growth
- The sales team is not developing enough new business
This last sales force issue is frequently pointed out by sales managers as a commission plan problem because they believe that salespeople are comfortable with their status quo and are not motivated to look for more challenging new businesses. Adjusting the compensation plan will definitely help in improving part of the sales force issues, but there are some others things that will eliminate the problem completely.
The compensation plan alone is not the only reason that your business may be experiencing sales force issues. Let’s talk about some other possible explanations.
Probable causes for sales force issues
First of all, consider your sales force size; if your sales people don’t have enough time because they are busy managing the business of the same customers, then this is a sign that your sales force size is probably too small. Few sales managers will notice, but this is among the most common causes of sales force issues.
Take a look and analyze how your sales force is structured, maybe you have to do some major adjustments. Are all your reps doing new businesses and doing repeat business at the same time? Remember that these two require very different sales skills. Address sales force issues by having a sales force specializing in each kind of business.
Are you hiring the right people? Maybe your sales force is doing a great job at keeping a good relationship with actual customers, but they are lacking that personality to aggressively pursue business from new customers. Training is another thing to focus while diagnosing sales force issues, your team needs guidance while hunting new customers.
Last but not least, the data and tools you are using also have their impact on sales force issues. If you don’t have the right tools for successful business generation and commission tracking, your sales force issues will continue. One of the most crucial tools to implement in your business is a commission management software. Blitz is the best commission tracking software, and it will help you resolve some, if not all, of your sales force issues.
Now you know it. Your commission tracking plan influences your sales force issues but it does not by itself determine sales success. Analyze and study your whole sales process and strategies, make adjustments on every aspect that may not be going as expected, and resolve your sales force issues one step at a time.
The Complete Guide to Sales Force Incentive Compensation: How to Design and Implement Plans that Work. Authors: Andris A. Zoltners, Sally E. Lorimer, and Prabhakant Sinha. 2006: New York, NY. Amacom Editorial.