Good, Better, Best
By Kelly Lusson
Where does your organization fit?
In the combined experience of AMark’s consultants, we have had the opportunity to visit hundreds of leadership teams around the world. Through our experience, we have developed best practice examples, which allow us to set a benchmark for the success of our client partners. Below are some of the “Good, Better, Best” examples we’ve encountered in our practice, as well as red flags that represent attitudes or perceptions that often hinder performance.
Estimating Market Size
We’ve estimated the size of our market based on…
Good
…some industry reports, word of mouth, and intuition.
Better
… multiple industry reports, word of mouth, and high-level competitive analysis. We have an idea of our market share in terms of customer account coverage.
Best
… a combination of industry reports, word of mouth, competitive analysis, and application-based modeling. We are confident in our market share estimates, and we’ve broken down our sales opportunities by both coverage and penetration potential.
Red Flags
“We cannot possibly estimate the size of our market. There are too many variables.”
Setting Goals for Growth
Our growth goal for 2018 is…
Good
… to have as much revenue as we had last year.
Better
… to grow XX% because it would be an improvement over last year and we know that our market is growing.
Best
… to grow XX% because we know that our core industry is growing at least XX%. We also know that our key competitors will grow at least XX%.
Red Flags
“We’re just trying to keep our doors open.”
Assessing Key Competitors
We have…
Good
… a general idea of the top three companies with whom we’re competing.
Better
… an idea of which companies have a strong foothold in our core industries. We know that we currently lose sales to ABC company in XYZ industry. We’ve gathered input from employees who previously worked for our competitors.
Best
… evaluated the strengths and weaknesses of our key competitors with regard to our core product offering, industry focus, and geographic presence. We have an idea of why we’ve lost a sale to a competitor (price, quality, service, etc.), and we’ve documented this information in our CRM tool. We hold quarterly meetings to analyze key opportunities lost and set realistic targets to improve our value proposition.
Red Flags
“We have too many (private) competitors – it would be impossible to try and estimate their market share.”
OR
“”There are a lot of companies in China who manufacture our product, but we don’t have any ‘true’ competitors.”
Potential-Based Resource Allocation
We've established our geographic footprint based on…
Good
… the original footprint of our founders.
OR
… the locations where we had a relationship with a key employee/ customer/ distributor/ etc.
Better
… the areas where we’ve historically achieved the most traction in terms of sales.
Best
… a combination of historical sales performance, estimated market size, concentration of potential customers, and forecasted CAGRs.
Red Flags
“The majority of our business is in California, but we have a subsidiary in Savannah, Georgia because we had a good relationship with a distributor there (in 1985).”
Individual Sales Goals
Each sales representative…
Good
… knows the revenue targets for the company, and receives overall revenue updates on a quarterly basis.
Better
… knows the revenue targets for the company, has individual sales targets for the year, and receives overall company and individual updates on a monthly basis.
Best
… knows the revenue targets for the company, and understands how individual sales targets will contribute to the goals of the organization. (Bonus if the representative helped to set their own targets). Receives updates on a bi-weekly/monthly basis. Is incentivized based on sales performance.
Red Flags
Pat (Sales VP) says that our goal is $41 mil., but I don’t really think that’s possible.
OR
Pat (Sales VP) says the goal is $41 mil., but Sam (CEO) says we’re just going to try to do what we did last year.
Distributor Relationship Management
We talk to our distributors…
Good
… on a regular (quarterly) basis. We have a handshake agreement regarding sales territories and product exclusivity. We have a general idea of the industry breakdown for distributor sales, and our distributors seem to perform well.
Better
… on a frequent (monthly) basis. We have a mutual agreement regarding sales territories and product exclusivity. We have a high-level industry breakdown for distributor sales and we receive forecasted sales targets for the coming year.
Best
… on a monthly basis, and sometimes more often. We have a specific, agreed upon definition of geographic or industrial territories, product exclusivity, etc. We receive an accurate industry breakdown for distributor sales and we know why distributors are losing business to our competitors. We have an annual target setting discussion with each distributor, and review results on a quarterly basis.
Red Flags
“I don’t remember the last time I spoke with my distributor(s).”
OR
“We can’t ask our distributor what they’re doing or tell them what to do — that’s not how our relationship works.”
Call Planning
Our sales representatives…
Good
… have a general idea of which customer calls should take the highest priority. They call or visit customers on an ad hoc basis, however the majority of customers seem satisfied with the level of interaction.
Better
… can provide a current list of high, medium, and low-priority customers, and establish a basic plan for following-up with these customers on a weekly/monthly/quarterly basis (may not be formerly documented).
Best
… can provide a current list of high, medium, and low-priority customers, in addition to high, medium, and low priority prospects. These representatives develop a weekly plan for reaching out to current customers and prospects, including a goal for the interaction and expected outcome. They document each sales call in a CRM system and schedule the necessary follow-ups.
Red Flags
“Representative drives around without a plan and only visits with the current customers where he or she has the best relationship.”
OR
“Representative drives around and leaves unsolicited business cards in the door of the potential customer.”
OR
“Representative spends the majority of time delivering products to the customer.”
Sales Force Leadership
Our sales manager…
Good
… acts like a member of the sales team. Works with customers alongside other sales representatives. Spends a large amount of time putting out fires.
Better
… acts like a member of the sales team, but takes time to assist sales representatives with troubleshooting and strengthening relationships with high-potential customers. Helps sales representatives to develop selling skills. Communicates with company management regarding current progress.
Best
… speaks with sales representatives on a daily basis regarding the outcome of yesterday’s calls and the plan for today. Acts as a resource to remove barriers for the sales representative – often by delegating tedious or time-consuming tasks to other resources. Visits with highest-potential customers, and creates penetration opportunities. Spends time in field with sales representatives, and identifies specific areas for improvement, leading to training and development initiatives. Communicates with company management regarding the current progress of the sales team and future expectations.
Red Flags
“Manager is unable to create or present a concise picture of sales progress, and therefore cannot manage to an overall revenue target or communicate sales team performance with company management.”
OR
“Manager is too busy working “”IN”” sales to work “”ON”” sales – lack of enterprise perspective, stuck in tedium, or constantly putting out fires.”
For more information on how to turn your “Good” practices into “Best” (or if you see a few Red Flags!), please feel free to email me at kellylusson@amarkconsulting.com. I’m happy to share our best practices with you, and I’m confident that we can turn the real-world experience of my team into sustainable, profitable growth for your company.