How do you build a Sales Culture that rocks?!
We all know the business world is more unpredictable than ever. Companies that were once giants are disappearing, and it's not just a trend—it's the new normal. Since 2000, over half of the Fortune 500 companies have either gone bust, been bought out, or vanished. And by 2027, about half of the S&P 500 firms will have been replaced.
The manner in which B2B buyers want to engage has also changed dramatically. Face to face selling in a B2B world has been the cornerstone of opportunity development for revenue retention and growth. Sure, online and telesales have steadily increased as a sales channel but pandemic and recessionary influences have accelerated a paradigm shift to the point where the new normal is bringing the decline of face to face customer interactions and the rise of remote selling.
According to recent research from McKinsey and Gartner two-thirds or more of B2B buyers prefer remote or digital interactions with suppliers; they don’t want to see or talk to a sales rep!
Sales, as you'd guess, isn’t immune to this chaos. The average tenure of a VP of Sales has dropped from 26 months to just 19 months in seven years. Even hitting sales targets has become a Herculean task, with quota attainment dropping significantly.
But don't worry, there are ways to turn this ship around.
Know Your Team Inside Out
First things first, assess your team. It's like having a garden—some plants thrive, while others struggle. You need to figure out who’s blooming and who’s wilting. Not everyone is cut out for sales, and that's okay. Sometimes, you need to move people to roles that suit them better, like moving a sun-loving plant out of the shade.
Rate your team on a scale from A to F. Those who score below a B minus probably aren't right for your team. The biggest return on your efforts as a sales leader is to ‘move the middle of the bell-curve’ to the right, which typically represents up to 80% of your team.
Read up about how—and why—to remove the “lefthand side of the bell-curve” in our blog here.
Hire Smart, Not Hard
Hiring the right people is crucial. Think of it as choosing the right players for your football team. You want those who not only have the skills but also fit into your team's culture. Use a structured hiring process. Assess candidates with online tests, pre-screened calls, role plays, and case studies of actual sales situations you face. This way, you see if they can really walk the talk.
Nothing is ever 100% certain in hiring, but you can reduce the guesswork with a systematic approach. Make sure your process checks if they're a good fit, both behaviourally and cognitively.
Know Your Sales Math
Growing your sales isn’t rocket science, but it does require some math. There are a few main ways to boost sales:
Increase the conversion or win-rate rate.
Increase the average deal value .
Reduce your sales cycle.
Expand your sales pipeline.
Most companies focus on the first and last points. But don’t forget about increasing the average sale size. Small tweaks in these areas can have a huge impact. For example, a 26% improvement in each can double your sales.
Know Your Customers
Knowing and segmenting your customers is like having a map to guide your business decisions. It helps you understand who your customers are and what they need.
Imagine trying to sell winter coats in summer – it’s not going to work. But if you know who’s looking for winter coats, you can target them specifically, making your marketing efforts much more effective.
By breaking down your customers into groups, you can create marketing campaigns that speak directly to each group. It’s like having a conversation with a friend, where you know exactly what interests them. This makes your messages more relevant and engaging, leading to happier and more loyal customers. When you give people what they want, they stick around.
Think about your resources too. Without segmentation, you might waste money and effort on broad campaigns that don’t hit the mark. But when you focus on specific segments, you can allocate your budget and resources more wisely. It’s like throwing a dart – aiming for the bullseye is much more effective than just throwing blindly.
Segmentation also helps you develop products that meet the exact needs of different customer groups. It’s like cooking a meal – you need to know what ingredients your guests prefer. By understanding your customers better, you can create products that they actually want, reducing the risk of failed launches.
In short, segmentation is your secret weapon to understanding and reaching your customers more effectively. It’s about having smarter, more meaningful conversations with them, leading to better relationships and more sales. So, start mapping out your customer segments today and see how it transforms your business.
Have a Clear Sales Process
Imagine trying to build a house without a blueprint. It would be chaos, right? The same goes for sales. Without a structured sales process, your team is like a group of cats—each going their own way.
A clear process provides a roadmap from the first contact to closing the deal and beyond. It ensures everyone is on the same page and follows best practices. This consistency is key to efficiency and success.
Track Discovery Meetings
Discovery meetings are like the first date—they set the tone for everything that follows. These initial meetings are crucial for building rapport and understanding client needs. Keep a close eye on how many of these meetings your team is scheduling.
Use your CRM to track them. If your team has plenty of discovery meetings, they’re likely to have a healthy pipeline. This metric is a leading indicator of future success.
Let Your CRM Do the Work
Your CRM should be like a reliable assistant, keeping track of all the details. It helps you see what your salespeople are doing daily without micromanaging them. It’s not about being Big Brother; it’s about efficiency.
With a good CRM, you can see how many meetings are scheduled, calls made, and referrals asked for. This transparency allows you to focus on strategic decisions rather than getting bogged down in the day-to-day.
Run Structured Sales Meetings
Think of sales meetings like a well-run family dinner. There should be a plan, everyone should know what to expect, and you should leave feeling satisfied. Regular, structured sales meetings with clear agendas and commitments are crucial.
These meetings keep everyone aligned and accountable. They help address challenges and set clear goals for the next period. Consistency here drives performance and accountability.
Coach with Intention
Coaching isn’t about being reactive; it’s about being proactive. Imagine you’re a football coach. Instead of just yelling from the sidelines, you work with your players to help them understand the game better.
Use questions to guide your salespeople to their own solutions. Ask three questions before giving feedback. This approach encourages self-reflection and helps them develop critical thinking skills.
Avoid a Bad Sales Culture
Creating a positive sales culture is as much about avoiding pitfalls as it is about implementing good practices. Here are a few things to avoid:
Lack of Accountability
Salespeople need to own their performance. Avoid letting them dodge responsibility or fudge numbers. Encourage them to track their progress and hold themselves accountable.
In sales meetings, have each sales rep take the team through their respective dashboards, live on the screen, not via printouts. This drives CRM utilisation and data quality!
Sales Conversation Avoidance
Don’t let your team hide behind emails. Encourage direct communication through calls, voice notes, and video messages. Emails should be for confirmations and summaries, not negotiations with prospects or customers.
Uncomfortable Team Dynamics
Your team should feel like a supportive family, not a battleground. Promote a culture of openness and trust where everyone feels valued – and safe.
Four Pillars of a Great Sales Culture
1. Clear Focus
Know your business, target clients, and sales approach. Differentiate between A, B, C and D clients and focus your efforts accordingly. A clear focus aligns the team’s activities with your goals. Growing “share of wallet” in existing customers is easier than closing net-new logos, especially when the market is down.
2. Strong Activity
Both the quantity and quality of sales activities matter. While it’s important to measure the number of activities, the quality of these activities is even more important. Engage in field coaching to ensure they’re effective.
3. Healthy Pipeline
A healthy pipeline is essential for success. Regularly assess its health by identifying whether it’s healthy, congested, thin, or filled with false hope.
Which opportunities are “stuck” (e.g. more than 60-90days in the same stage), what does the “bow wave” look like (opportunities that get pushed out time after time), how many are “stale” (with an expected close-date of in the past)?
Does the pipeline have a healthy mix of “big rocks” or “marlins” (large opportunities with typically a long sales cycle) and smaller, short-term opportunities?
4. Results
At the end of the day, you want results. By maintaining a clear focus, strong activity, and a healthy pipeline, your team can consistently deliver exceptional results.
Building a Culture Around These Pillars
To create a world-class sales culture, integrate these elements into your strategy:
Management Disciplines
Strong management is like the backbone of your sales culture. Focus on coaching, providing feedback, managing meetings, and conducting a regular cadence of one-on-ones. This keeps the team aligned and motivated.
People Development
Invest in your team’s growth. Continuous development is essential for a thriving sales team. Encourage learning and improvement.
Reward and Recognition
Celebrate successes. Recognising and rewarding performance boosts motivation and morale. Implement fair and transparent reward systems.
Systems and Technology
Use CRM systems and other tools to support the sales process. These tools provide insights, streamline workflows, and enhance communication.
Indicators of a Great Sales Culture
A great sales culture has energy, purpose, and clarity. When you walk into a sales office with a strong culture, you feel it. Team members are engaged, know their goals, and are aligned with the mission.
Contrast this with a poor sales culture, where interactions are minimal, and the environment feels stagnant. In a strong sales culture, there’s a sense of urgency, purpose, and connection among team members.
Enhancing Sales Culture Through Customer Feedback
Incorporate customer feedback into sales training. Role-playing with real or simulated customers can provide valuable insights and help your team refine their skills. Encourage regular feedback from clients to improve your approach.
Invite friendly customers into your role plays!
Achieving a World-Class Sales Culture
Building a world-class sales culture requires commitment from everyone. Sales leaders and managers must lead by example. Focus on the key components of a great sales culture and avoid common pitfalls. Consistent effort and a commitment to excellence will help you create a positive and productive sales environment.
In conclusion, building a world-class sales culture is about strategic planning, intentional coaching, and continuous development. By implementing these strategies, you can create a positive and productive sales environment that drives exceptional results.
Remember, a strong sales culture isn’t built overnight; it takes consistent effort and a commitment to excellence from everyone in the organisation. So, roll up your sleeves and start building the sales culture your team deserves!
📞 Want to know more?
Contact us for an obligation-free chat about how we can help you and your organisation get more effective at growing your business.
コメント