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This is what happens if you do not “squeeze” customers: how a simple check revealed the problems of the sales department


Photo: fitntasty.ch

“Is it realistic to improve the company’s business performance in 1.5 months?” Dmitry Gerasimenya, an expert on reorganization of sales departments, is confident that this is possible. To prove this, he invited 3 companies from different fields, whose employees will simultaneously implement changes according to his recommendations in their daily work. Last week we talked about the results of the audit of the first company. Today we will introduce you to the second participating company – CapaCity – and tell you what its audit revealed.

Together with an expert in building and reorganizing sales departments, Dmitry Gerasimenei, the owner of Studyon.pro, we continue the marathon (and a series of articles) “Pumping sales departments”. In the materials of this series you will find useful information and practical advice on the correct structure of the work of the sales department.

Working with each company is built according to a simple 5-stage scheme, which we described in detail in first article cycle.

In the photo: Dmitry Gerasimenya
In the photo: Dmitry Gerasimenya

Dmitry Gerasimenya: No company operates 100% efficiently. Even small companies, in which it would seem easy to build effective work, have a significant margin for growth (I talked about one of such examples here). Having studied the CapaCity company, I saw that it also has such growth points. A more detailed audit only confirmed the first impression.

Let’s see what the second company wrote about itself.

“CapaCity”: company profile

Type of ownership: Limited liability company

Business of the company: Sale of greenhouses and related products

Numerical indicators of work:

  • Conversion from an incoming lead (call, application on the website) to sales in the last 4 months – 14.6% (important: only for new customers!)
  • Average check (+ number of goods / services in the check): 800 BYN rub. (about € 256), 1 item
  • Number of leads per day: over the past 4 months, the average is 20-30 leads per week
  • Average trade cycle: 7 days
  • Tools: CRM system, manager reporting system, scripts, plan for the number of transactions, order processing regulations, incentive system for managers, recording and listening to calls, notifications of missed calls, sales analytics for each past week
  • Internal problems of the sales department (according to the company itself): insufficiently effective handling of the client’s objection “Expensive”.
Image courtesy of LLC "CapaCity"
Natalia Karpitskaya. Image courtesy of CapaCity LLC

Natalya Karpitskaya, Head of Client Relations Department, on the reasons for participating in the marathon

– Our company started selling greenhouses about 5 years ago. Then the situation on the market was quite comfortable: a small number of competitors, factory goods with good quality and many grateful customers. 2018 became one of the best for us in terms of profit, we made a large number of sales with excellent conversion – we closed deals with every fourth client who contacted us. However, since 2020, the market situation began to deteriorate. A large number of unscrupulous competitors appeared, who literally “in the garage” assembled homemade frames and sold them cheaper.

Against the background of the declining purchasing power of the population, buyers began to choose cheaper goods more often.Certain factors also led to a decrease in conversion in our call center. Thus, we were selling the same product, but the conversion in 2020 turned out to be approximately 1.5 times lower than in 2018. Why did we decide to participate in this project? To improve what we have now. We want to understand what exactly hinders the increase in conversion rates, given that the company uses a fairly large number of tools. And the most important task facing our team is to prove to our customers and ourselves that even in the current conditions a better and more expensive product can be in demand and sell well.

What the initial audit of the sales department revealed (point A)

Dmitry Gerasimenya: During the audit, I used a comprehensive sales force assessment methodology. A schematic representation is shown below.

Image courtesy of the hero of the article
Image courtesy of the hero of the article

What features and shortcomings were identified during the audit (by modules, with the exception of the “Sales Strategy”, which cannot be effectively influenced in such a short period):

Sales department module

Organizational structure of the department:

Image courtesy of Dmitry Gerasimenei
Image courtesy of Dmitry Gerasimenei

Disadvantages identified:

1. Interaction with the sales department:

  • Due to the pandemic, the sales department began working remotely, and scheduled meetings were no longer held. Previously held regularly offline
  • There is no exact decomposition by day and week (calls, orders, conversions, sales). There is only a general plan for the month
  • The portrait of a potential client is not spelled out (“pains”, values, decision factors)
  • Sales tools are implemented in the sales department by 99%. Everything is almost perfect and is reflected in the company’s internal documents.
Image courtesy of LLC "CapaCity"
Image courtesy of CapaCity LLC

2. Disadvantages in the work of sales specialists:

  • The portrait of a potential client and decision factors are not spelled out
  • Offers with “pressures” for each funnel are not registered
  • Very often, managers “think for clients” and believe that it is “expensive” for them, thereby losing clients
  • Arguments are not clearly spelled out and not implemented into practice: “Why do you need to buy (a product / service) today or within a month?”, “Why do you need to buy a product today?” The arguments are spoken only orally by managers and irregularly.

Module “Business Processes”

No significant deficiencies were found.

Module “KPI and motivation”

Sales managers:

  • No short or long term motivation system
  • No reduction factor for non-fulfillment of the sales plan
  • There is no intangible motivation system: ratings / gamification, the title of “best employee”, etc. Previously attended when working offline
  • Employees are not motivated to achieve quick results, work with new clients, increase the average check, etc. – both short and long distance (2-3 months), as there is no competitive process or gamification. The best employee is awarded only at the end of 1 month.

Conclusion: the sales department is in a state of “comfort” or “stagnation”.

Module “Technologies”

CRM:

  • The sales funnel is set up incorrectly: broken into touches. Applications from the site fall into the status (name), applications that are entered manually fall into the status “not processed”
  • The status “Taken into work” is missing
  • Analytics in CRM are not particularly used, all indicators are counted in Excel, except for incoming requests
  • The status of “REFUSAL” is not detailed enough – there is only “low-quality lead”, “refused”, “the bank refused”, “bought from a competitor”, there are no other reasons
  • There are no statuses in the sales funnel with “pushing” customers and no offers for them are registered
  • OP managers also work with a cold base of clients, but they keep it in Excel, which does not allow them to be sure of correct work with clients. You need to create a separate funnel in CRM
Image courtesy of LLC "CapaCity"
Image courtesy of CapaCity LLC
  • After communicating with clients, managers do not write a thesis comment on the progress of the dialogue, but write a comment on the problem (very short). Therefore, before each call, the manager needs to listen to the call in order to understand exactly what they talked about earlier.
  • Clients are not qualified in CRM by their priority or warmth (hot, cold, warm).
Image courtesy of LLC "CapaCity"
Image courtesy of CapaCity LLC

Recruitment and Training System Module

  • There is no “Knowledge Base” – “best” and “worst” calls with clients for each of the bases.

Conclusion after audit

In short: I enjoyed the audit. All blocks – marketing, sales, finance, management, automation of work processes – are built correctly. The owner and management of the company devoted a lot of time to this, which had a beneficial effect on the work of the entire OP.

Each department understands its area of ​​responsibility: this is enshrined in regulations and instructions (head / manager book, reporting forms, scheduled meetings, etc.). But the most important thing is that all processes are implemented.

If everything is so good, what can be improved?

As a rule, as a company grows, it adjusts “quantitative” indicators, but at the same time often loses the quality of performance of individual elements. For example, when introducing new sales tools and adjusting the work of employees (especially with the growth of the staff of sales managers), not enough attention is paid to listening to calls, detaching from competitors, using offers to “pressurize” customers, etc. In addition, the pandemic forced some employees to shift to remote work, which also negatively affected the conversion to sales and the company’s revenue.

In order to increase the existing indicators, jewelry work will be required. It will be a troublesome business, but the challenge has been accepted!

The results of the audit of the first participating company can be found here

From the editor: Articles with the results of verification of companies participating in the marathon will be published on our portal every Thursday in February. The results of the marathon – in early April. Subscribe to our telegram channel and stay tuned!

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Fidenge Pecold

My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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