Sluggish
Revenue Growth:
Companies
cannot grow if they fail to regularly acquire new clients. A
key here is that a poorly trained sales force does not have
the ability to "create demand" for its products
and services. We find less effective salespeople to be
overly focused on customer service related activities
because they get such poor results whenever going after new
business.
Lost
Sales Opportunities:
A small
percentage of your target market is in the shopping stage of
buying behavior at any given time. An ineffective sales
force misses the chance to walk through this window of
opportunity by being overly presentation focused versus
listening focused.
Poor
Morale:
A poorly
trained sales force has a tendency to complain about such
factors as price, when in fact it is their selling skills
that are holding them back from better performance. By
blaming their own poor results on the company they only add
to the negative effect on the team.
No
New Clients:
Every company
experiences attrition with its existing customer base.
Existing clients go through acquisitions and mergers, go out
of business, change business models, etc. If your sales
force is not focused on new client acquisition to compensate
for the difference, the result will be negative growth.
Competition
Gaining Market Share:
If one figures
the lifetime value of customers by calculating annual sales
multiplied by 5 to 10 years, it is easy to see the
incredible amount of dollars being lost due to a sales force
that lacks proper selling skills. Also, your sales force can
give your company a competitive advantage over your
competition if they add customer value beyond the attributes
of the products and services you sell.
Lack
of Innovation:
Often, an
organization's major information pipeline from its market
place is through the field sales force. A sales force that
is not trained in effective questioning and research
techniques can miss market trends and, therefore, huge new
product opportunities. Thus, the company does not get the
type of cutting edge information back that allows it to
innovate, create new products and services, etc, as a means
to differentiate from the competition.
Wrong
Customers:
Ultimately,
you want to bring new customers aboard who truly appreciate
the type of unique value you deliver. Less effective
salespeople have a tendency to lack strategic focus. The
result is a very scattered prospecting approach that leads
to creating new customers who turnover quickly.
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