With a severe recession fully underway, it shouldn't be surprising that the leaders of most printing and marketing services companies are worried about sales. Most companies will find it very difficult to keep 2009 sales at 2008 levels. Growing revenues in 2009 will be a herculean task, and some companies will face substantial revenue declines.
While there is no "magic bullet" for increasing sales, there are several ways to improve the performance of your sales team. The 2009 Sales Performance Optimization Survey and Analysis report by CSO Insights offers a wealth of information about the current state of sales performance and how to improve it. One of the key points revealed by this research is that sales success depends on how you sell as well as what you sell.
How you sell has two major components. The first component is how your customers perceive the nature and value of the relationship with your company. CSO Insights identifies five levels of relationship that a company can achieve with customers. At the lowest level, most customers see your company as nothing more than an "Approved Vendor" that provides acceptable products or services. At the highest level, your company is seen as a "Trusted Partner" whose products, services, insights, and other contributions are key to the customer's long-term success.
The second component of how you sell is the process you use to engage and work with your customers. CSO Insights contends that company sales organizations will fall into one of four levels when it comes to the process they use to identify prospects and create customer relationships. Companies at the lowest level have no formal selling process. Every salesperson does his/her own thing. At the highest level, a company uses a well-defined selling process. The company monitors and measures the use of the process by its sales team and provides continuous feedback to individual salespeople about the process.
The research by CSO Insights indicates that the higher you are along these two dimensions (relationship and process), the more sales success you will achieve. For example, CSO Insights found that higher ranking companies have more salespeople who achieve their sales targets (quotas), higher closing ratios, and a lower turnover of salespeople.
In the graphic communications industry, we've recognized that it's important for printing companies to change how they are perceived by customers. Printers are regularly advised to use "consultive selling" or "solutions selling" to move their relationships with customers to a higher level.
Far less attention has been given to the importance of the marketing and sales process. In reality, most managers don't treat marketing and sales as a process at all. A business process can be defined as a group of activities that takes inputs and transforms them into outputs. By this definition, marketing and sales is as much of a process as what happens on the shop floor. Your print production process takes raw materials (paper, ink, etc.) and adds value to transform those raw materials into printed documents. Your marketing and sales process takes raw materials (people or organizations in the marketplace who have the kinds of problems your company can solve) and adds value to them until they are transformed into customers. In a very real sense, marketing and sales is a production process, and its objective is to "manufacture" customers.
The important point is that, because marketing and sales is a process, it can be measured, analyzed, and improved using tested and proven process improvement tools. This means that you can apply the techniques of lean manufacturing or Six Sigma to understand the real causes of your sales problems and to increase both the effectiveness and efficiency of your marketing and sales process. The traditional way to deal with sales problems is to provide sales training that focuses on individual selling skills, or to adjust sales compensation programs, or to simply demand more marketing and selling activity - more prospecting, more sales calls, or more quotes. At times, these actions may be appropriate and useful, but if the underlying sales process is flawed or ineffective, they probably won't solve the problems.
The importance of process quality can't be overstated. A flawed marketing and sales process will diminish the results of even the most talented salesperson. A first-rate marketing and sales process, on the other hand, will elevate the performance of even an average salesperson. Hajime Ohba, the former president of the Toyota Supplier Support Center, captured this idea well when he said, "We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes."
Discussion
By Kenneth Rizzo on Feb 17, 2009
The key to selling in a stressed economy is printers knowing and addressing their customers hot buttons. Lean, if implemented based on it's intent, focuses on the goal of total elimination of waste.
If printers...
Increase Availability for equipment to run
Reducing downtimes
Decreasing Setup/makeready times
Increase Performance of equipment when it is running
Increase equipment speeds
Reduce idling and minor stoppages
Improve equipment Quality rates
Slash waste
Cut spoilage
Once those issues are addressed then printers can hold their prices and sell their customers on short run lengths and quick response.
By Bayard Bookman on Feb 17, 2009
The idea of "manufacturing customers" has been discussed for at least 10 years. Using business process methods to improve marketing and sales results works. For an excellent book on the subject read Value Acceleration: Secrets to Building a Sustainable Competitive Advantage.
By Michael Josefowicz on Feb 17, 2009
Good post. I have never met a printer who has a well defined sales process, although I'm sure there are many out there.
My two cents this is the process I used when I was still in the game: You can divide your contacts into five bins:
Suspects
Prospects
Customers
Clients
Fans
The bins are defined by observable metrics:
Suspect is someone you can contact.
Prospect is someone who asks for an estimate
Customer has given you a job
Client has given you a couple of jobs
Fans are people who would recommend you to other people.
The sales process is doing something every day to move someone from bin 1 to bin 5.
@Kenneth,
Exactly for the manufacturing side. The trick is to have the same clear goals on the sales side.