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Rate Prospects With This Plan |
Before your salespeople hit the streets, help them analyze prospects based on some key factors. That way, they can use their time more efficiently and close more sales. Here is a simple numeric rating system:
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Does the potential customer perceive a need for the product?
Customers who get along fine without your product and don't think they need it are rated a 1.
A customer who buys a similar product from someone else is rated a 2.
A customer who has a need and is prepared to buy is a 3.
Can the potential customer afford the product?
A customer on the verge of bankruptcy is rated a 1.
A customer needing creative financing is a 2.
A customer with cash in the bank is rated a 3.
Who is the salesperson talking to?
A person who can buy only with a supervisor's permission, is rated a 1.
A purchasing manager is a 2.
The owner or top executive is rated a 3.
Add up the key numbers. A perfect prospect has a score of 9. The companies worth pursuing are those with the highest scores. |
Now that the groundwork is laid, here's a system that can allow you to go one step further and chart the progress of companies that your staff identifies as key prospects. Using a chart like the one below, write down the dates that a salesperson accomplishes each step. At the end of the month, analyze how many prospects move forward in the cycle.
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Prospect name |
Initial call date |
Analysis of needs completed |
Return call to present solution |
Written proposal of costs |
Sale closed |
Product installed |
Customer satisfaction follow-up |
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If sales reps are making tons of calls, but moving none of the prospects closer to closing, you obviously have a problem. Consider a reward system based on the number of prospects a salesperson advances through the cycle. Each month, the staff member who performs best might get a cash bonus or dinner for two.
And remember, not all rewards have to involve cash. You can give people with the best lead conversion ratios the most lucrative territories. That way, the more successful a salesperson is, the better the sales opportunities and future commissions. It's a gift that keeps on giving.
(For more tips on how to measure success, read our previous article, "Herd Salespeople Toward Success")
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any US tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. |
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