{"id":1179,"date":"2011-09-21T16:50:51","date_gmt":"2011-09-21T16:50:51","guid":{"rendered":"http:\/\/www.theweekinimaging.com\/?p=1179"},"modified":"2011-09-21T16:50:51","modified_gmt":"2011-09-21T16:50:51","slug":"sales-pitch-the-trouble-with-sales-metrics-and-why-sales-managers-are-part-of-the-problem","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/sales-and-service\/2011\/09\/sales-pitch-the-trouble-with-sales-metrics-and-why-sales-managers-are-part-of-the-problem\/","title":{"rendered":"Sales Pitch: The Trouble with Sales Metrics and Why Sales Managers are Part of the Problem"},"content":{"rendered":"
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David Ramos<\/p><\/div>\n

One of the initial questions I field with every newly retained client engagement is which CRM we at Strategy Development recommend?\u00a0 Typically they are asking this question due to the fact that their current system is not being utilized by their sales force.\u00a0 My first question in response to theirs is always, \u201cWhat do you plan on using the CRM for?\u201d\u00a0 The response is usually along the lines of, \u201cSo that we can track reps call levels (activity) and opportunities (pipelines) and track our wins\/losses (results and close ratios) and see if our people are working (again, activity)!\u201d\u00a0 Activity, pipeline, results, close ratios and back to activity\u2026sales metrics!<\/p>\n

Ah yes, sales metrics, those pesky sales and activity numbers\u2014hated and loathed by salespeople, and often for good reason.<\/p>\n

In many companies, the small bit of metrics data the sales manager and dealer principals get on their sales team members is used only for the purpose of harassing, browbeating, and threatening the salespeople.\u00a0 Alright, I am exaggerating (a little but not by much).\u00a0<\/p>\n

Activity reports turn into demands for the salesperson to make more calls. Pipeline reports are used to demonstrate a lack of activity and to demand more calls.\u00a0 Commission reports are used to highlight weak sales and demand more calls. Do we really believe the only answer to increased sales is to make more calls? Seriously, that\u2019s our answer?<\/p>\n

So what happens to the activity and pipeline reports? They get padded! Salespeople have learned that if you\u2019re just going to use it as a baseball bat to beat them with, they\u2019re not going to cut the tree down for you to make the bat.<\/p>\n

With the metrics available to sales managers and dealer principals from the traditional call, pipeline, customer status, and commission reports it is very difficult to isolate the root issues a salesperson has. It can be done. It takes study, practice and well developed analytical skills and real knowledge of the salesperson involved.<\/p>\n

Unfortunately, that is a lot<\/em> of work. So, many sales managers and dealer principals take the easy way out\u2014take a quick look, determine the root cause is not enough calls and demand more. It makes no difference if call quantity is an issue or not. It makes little difference if the salesperson has been properly trained in prospecting and your marketing strategies. It makes no difference if the real issue is their interpersonal skills, their communication skills, their presentation skills, or their selling skills and ability to probe, identify and solve prospect issues. The answers are usually the same\u2014make more calls.<\/p>\n

Since the salesperson sees no benefit from developing accurate reports\u2014but certainly sees a very real determent, is it any wonder the reports are fanciful?<\/p>\n

Now, what happens when the company institutes a new CRM and demands compliance to faithfully use the system? Typically it is resistance, pushback and a revolution from the sales people. From the salesperson\u2019s point of view, all the automated system is going to do is give the manager and the company a bigger bat to beat them with.<\/p>\n

Yet, salespeople can be taught to see sales metrics as a developmental tool. Certainly not by using the data the way it\u2019s been used in the past, but by using it to proactively help the salesperson make more money.<\/p>\n

The information gathered by a CRM\u2014in fact, even that puff of information generated by traditional reports\u2014can literally change a salesperson\u2019s career if used properly. Even a reasonable handful of accurate data can pinpoint real issues and real root problems that hinder a salesperson\u2019s performance. The data in the hands of someone who has been properly trained to analyze the information can be used to create an individualized training and coaching program for each team member.<\/p>\n

We recommend this analysis of the reports with metrics and coaching take place in a monthly review and planning session.\u00a0 The objective of this RAP process is to provide your team with feedback on the areas that they are doing well\u2014as well as the areas where they need to focus for improvement.\u00a0<\/p>\n

If salespeople understand the information makes them money through pinpoint training and coaching, improving their skills, getting them to comply with using the system and producing accurate data\u2014even a handwritten or very basic spreadsheet system\u2014isn\u2019t an issue. Most salespeople want to sell more. They want to earn more. They want to excel. But those same salespeople have no desire to be consistently beaten over the head.<\/p>\n

What skill sets do you typically analyze when working with your sales people to improve their skills?\u00a0 We recommend when doing the pinpoint training and coaching, you focus on 6 areas for skill set improvement.<\/p>\n