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Title: Zero Turnover Sales Force [Buy]
Author: Doug McLeod
In a nutshell: How to retain your sales team to save you valuable sales time and, ultimately, money. McLeod looks at the importance of keeping your sales team together for longer, an often overlooked factor in delivering results in sales and getting the best out of them.
“Many organizations suffer from ongoing sales-force turnover and never talk about it, assuming it’s a simple fact of life, an unfightable state of nature, part of the business plan.” – Doug McLeod
10 things you need to know:
1) Troubling turnover
McLeod leads with the statement that sales teams have a high turnover and this is where the problem lies. Firstly the cost of someone leaving tends to be 1.5X their salary, add to that the time and resources to recruit someone new and you have an unneeded headache. One of the main problems, he claims, is the relationship with sales managers, and the targets set. So what to do?
2) Get C-level executives on board
Step 1 of the solution is to make your employment terms more agreeable, and to do this you need the C-level executives on board. Present them with a plan which shows you need a loyal sales force, and show why as a sales manager you and the company will benefit from a loyal team. Make sure you highlight specific gains such as increased profit margins, better unity than your competitors and ultimately more efficiency.
Reasons Why Sales People Leave…
3) Commission
McLeod’s contention is that not paying a good salary devalues your staff; straight commission says “you’re a commodity”. Estimate the cost of high turnover and show that straight commission is a reason for this, and that a better pay structure will reduce this.
4) Cold calling
Drop it. According to McLeod cold calling turns salespeople into prospectors; is a waste of time, and the time could be better spent on marketing campaigns making consumers call you, rather than the other way round. Strong words.
5) Training
Unlike Frank McNair, Doug reckons you either have sales talent, or you don’t, and no amount of training will makes you a good salesperson. Reasons for optimism though; you can just act the part. McLeod condones role playing in sales training, by doing this you understand your prospector better and understand their perspectives. So in a way, McLeod contradicts himself, because the aim of this role playing training is surely to make you a better sales person. Moving on…
6) Meetings
Too many meetings spoil the broth is McLeod’s summation. Weekly sales meetings are counterproductive; instead hold monthly ones as these disrupt your schedule less. Make meetings more valuable and less frequent, and improve their quality by doing so. Where possible get the CEO involved to energise and inspire staff.
7) Great expectations
Expectations are best exceeded, so make your objectives clear and don’t confuse ideals with targets. Don’t make your sales team feel burdened by unrealistic expectations and as a manager stand up for your team when unattainable targets are imposed on them.
8) Know your enemy
Your competitors will always want to recruit your best sales people, McLeod insists that to keep your best members of staff you should treat them like a customer and be attentive to their needs. Keep them focused by offering them new challenges and always be aware of what your competitors can offer them.
9) Lead, don’t manage
Have your salespeople treat you like a leader, not a manager. Always be honest with them because according to McLeod, if you deceive them only once you will lose their confidence forever. You need them to trust you as a person, not just their manager. Not all of your staff will like you, but they need to respect you; so be consistent in your decisions and organised in your approach.
To conclude…
10) Make sales people stay
The key to retaining staff if you’re a sales manager is to look at your own role in relation to theirs. Attending to your staff will make them stay, so always ask open ended questions that probe into what your staff need and want, and be proactive in looking to solve their problems. Command respect and confidence by ‘walking the walk’ and your staff will stay with you for longer and importantly; this will result in a better working environment and more sales.
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