Sales Management - High Yield Sales Territory Management - Prospecting Efficiently

"You've Got the Order." The words we love to4. Now Build Your Sales Territory Management
hear. They're Priceless!!Action Plans
Everyone wants more sales. So here's how.Your first mandated action is to keep the existing
Manage your sales territory better. Bring in morebusiness. This is where my book - TAKE ME TO
prospects. Improve closing ratios, or do both.YOUR LEADER$ will help. It shows the actions
Now increasing closing ratios is by far the easiestneeded to develop the relationships and leverage
if you;to retain and grow existing volume, as well as,
1. Go after the right prospects and opportunities,get their other opportunities you don't have.
and5. Now look at all the other accounts you don't
2. Go after the right prospects and opportunities.have in the rest of the region. It's overwhelming
Probability and ProcessI'll bet. So start prioritizing based on the statistics
Any successful person learns process andabove. Note how much business is available from
probability - business person, athlete, gambler,existing customers, either the competitors' share,
sales person, etc.or services they do themselves that you could
Process -- What's the strategy; what's the gamesell. Then look at the rest. This visual with be very
plan; what's the method/system/...?revealing and motivate you to prospect.
Probability - Based on conditions presented, whatKnowing the inventory of sales opportunities will
action has the best probability of success?give you a handle on growth. You can now build
Let's apply this to closing ratios or going after theaction plans for keeping existing business and
right prospects and opportunities.capturing other potential opportunities. Cover
Here are the probabilities for making sales:oevery opportunity in every marketing/selling
Existing Customers - Existing Products/Services -phase. The farther down toward the sale the
67%o Existing Customers - New Products andmore energy/time you should allocate.
Services - 50%, (80% if they helped develop itFor example with a new customer you may want
with you)o Old or Lost Customers - 40% Existingto do a low cost mailing campaign - minimal
Products/Serviceso Old or Lost Customers - 25%energy. For a competitor's customer, you may
New Products/Serviceso New Customers -want to do some phone research to find the right
Existing Products/Services - 25%o Newpeople and then contact them (phone or in
Customers - New Products/Services - 5%person) to learn their likes and dislikes of the
This tells you how to manage your sales territory.competitors. For existing customers you should be
That is, spend more time prospecting withspreading through that organization like a virus,
existing customers. To be more exact, spendmeeting all the people impacted by your products
50% of selling time with existing customers, 30%services, especially all the senior managers to
with old or lost customers and 20% with new orlearn likes/dislikes, issues, opportunities - high
competitors' customers. Readjust your timeenergy.
allocations to the above and watch your closing6. Now assign an action to every opportunity,
rates go up. That was easy - wasn't it.even the 5 %'ers, and a date of completion. Use
Now let's talk process for selecting prospects andanother excel spread sheet with a column for
opportunitiesOpportunity, Action and Completion Date, and
Sales Territory Management Starts with BuildingWho's Responsible. This is your accountability or
Your Opportunity Matrixtracking document. Without this, opportunities will
1. Using an Excel chart, list who buys, and what,be overlooked and ripe for competitors. Make
and who doesn't buy. Enter all existing clients (anddifferent people responsible for different types of
their divisions and locations) down the left column.actions.
Across the top row, list all the products andFor example, Marketing does the mailing for the
services you sell. Include new or potentialspecified list of low potentials. The sales person
products as well. Use categories if there arecalls the competitors' clients. Customer Service
many products. Check off with a "+" theEngineering/Technical Support practice effective
products/services existing customers buy andlistening and get the sale person introduced to the
note your percentage if they also buy the sameclients senior managers. The sales person should
from competitors. Leave blank (for now) all thebe the lead and coordinator to make sure each
services and products they don't buy from you,action by others is accomplished.
but could. Indicate with an N/A's those boxes thatManaging the Sales Territory Management
don't apply or fit at all. Don't use dollars orProcess
quantities. You just want a simple visual.Sale management should review the Opportunity
2. Now list all the old customers. Here the rowsMatrix and Funnel of Actions for each sales
will be empty. Make a note of what they use toperson to be sure all potential opportunities are
buy from you with XX's. Then list competitors'covered and people are assigned for the
customers. Note what they buy from thescheduled actions. Managers should also review
competitor with YY's, and things they don't buytime allocations to be sure sales people are
from anyone, but could, or do it themselves.spending time on each category of opportunity in
Finally list those that do everything themselves orthe right proportion.
you're not aware who/if they buy from.I often hear, "We do this at the beginning of each
This is your Sales Territory Managementyear." or "We have to report this every month."
Opportunity Matrix - a visual of all the sales youMy question is, "Do you forecast every month?
could theoretically be making.Do you track the actions you'll do to insure the
3. Now identify each opportunity by chance offorecast will happen?" Usually it's the former. The
them needing it - Way Out There (M1) to Outfocus of management has to be how well the
There (M2) to Likely Candidate (M3) to Theyopportunities are being attended - not forecasted.
Showed Interest (M4) - these are the marketingBesides, low and moderate potentials should never
phases. Once a prospect gives you a good verbalbe forecasted.
indication there will be a purchase, prioritize intoThe Opportunity Matrix and The Funnel of Actions
the selling phases - Qualify (Q), Proposal (P), Closefor each sales individual or territory will produce
(C). Fill in the Opportunity Matrix with the(1) a reality check of whether the sales will be
appropriate abbreviation.made as forecasted; (2) an appreciation of selling
Create this Matrix with your Customer Serviceskills / deficiencies for each sales person; and (3)
Engineering/Tech Support/Operations people.a vision about the future - where will next year's
These people usually know more or have easierbusiness come from. The manager can then begin
access to the client's people than the sales person.directing, coaching and/or correcting before
They can be a wealth of information about whatexpected sales are lost or not met.
going on inside your clients' organizations. LaterThis is probability and process. This is how to
they can be a great network for introductions toselect the right prospects and opportunities. This is
high level people. Managers should thoroughlywhat will dramatically increase closing ratios and
review this at least twice a year, but sales peoplethis is what will increase sales.
should update it monthly.And now I invite you to learn more.