“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. We have already talked about the audit results of the first and second companies. Today we will introduce you to the third participating company – “Leadme” – and tell you what its audit revealed.
Together with an expert in building and reorganizing sales departments Dmitry Gerasimenei, 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.
Dmitry Gerasimenya: No business is 100% efficient. This is especially true for small companies that are at the beginning of their journey. Even having a very high-quality product, you need to understand that the fruitful growth of a company directly depends on systematically implemented and well-functioning tools. How is the third company doing with this?
Let’s see what input they came up with for the marathon.
“Leadme”: company profile
Type of ownership: Limited liability company
Business of the company: sale of lead generation systems to attract customers
Numerical indicators of work:
- Conversion from an incoming lead (call, application on the website) to sales in the last 4 months – 5% (important: only for new customers!)
- Average bill (+ number of goods / services in the check): $ 2300 (about € 1890), 1 product
- Number of leads per day: for the last 4 months, the average is 6-8 leads per week
- Average trade cycle: 15-20 days
Tools: CRM-system with end-to-end analytics, offers, lead generation system, motivation system, daily reports, auto-warming funnels (chat bot), price lists, presentations.
Internal problems of the sales department (according to the company itself):
- Non-systematic implementation of the monthly sales plan
- “Meetings” of clients at the stage of making an advance payment
- Managers do not always quickly adapt to the client’s narrow professional issues
- The sales department is not ready to scale and “unpack” to other markets.
General Director Artem Botyan – on the reasons for participating in the marathon
– I believe that our sales specialists are also the “first persons” of the company with whom clients communicate. Therefore, each manager must understand his business thoroughly, so that the customer has no doubts in favor of choosing our services.
We produce personalized digital tools for our partners. And going through the stages of development / integration / maintenance / service, we ourselves become a part of our partner’s ecosystem.
Today is the time for manufacturers, not intermediaries.Therefore, now the main task of the sales department is not to sell one-time for a high check, but to build mutually beneficial partnerships with clients that will make it possible to work for at least 1–2 years. By participating in a marathon, we want to test the team and the entire department in a competitive race, and, of course, find weak points in our work that we did not know about before.
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.
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:
1. Organizational structure
- The organizational structure of the company is spelled out incorrectly: there is no exact functionality of each employee and his center of control (a valuable final product, the result of a specialist’s work)
- There is no time card for: managers, lead manager, ROP.
Therefore, the work is slightly chaotic.
- All complex information is only in the memory of the ROP.
2. Disadvantages of ROP:
- Working hours card missing
- The functions of the ROP are prescribed by the director (owner), but, unfortunately, they have not been introduced into the work, since the ROP works according to its own feelings.
3. Interaction with the sales department:
- There are no rules for wiretapping calls, the ROP corrects calls from managers based on its previous experience in sales
- Sales decomposition (or “plan-fact”) is introduced superficially: there are only figures for the total number of requests, meetings and contracts. There is no exact decomposition and plans for employees by the number of “productive” calls, appointments and meetings held (demo), average bill, etc.
- There is no regulation on “wiretapping”, this process is chaotic, so it is unclear what is considered an indicative conversation and what is not
- Correction of mistakes of sales managers is made and specialists receive “feedback”, but in case of repeated violation – they are not fined
- The company does not carry out certification of employees for their suitability for the position they hold
- There is no specialized training in sales, employees in working with clients use their previous experience (correct / incorrect) and feedback from the ROP with examples from his previous experience
- There are no scripts (scripts) to work with a “warm / cold” base
- Working out of customer objections / doubts is not spelled out
- There are no offers to close clients at each stage of the funnel
- There are no special offers for working with the company: why you need to start work this month, why with us (benefits), why you need to pay exactly today, etc.
- There is no work on lost and left clients, managers are oversaturated with incoming requests
- The sales department does not provide a report on the work done to the director (owner) of the company
- ROP itself “squeezes” clients due to its expertise. But all the feedback from him is given “in words”, it is not introduced into regulations or processes.
In fact, ROP pulls on itself the entire final part of sales.
4. Disadvantages in the work of sales specialists:
- Working hours card is not registered
- There is no well-defined sales process.
5. General disadvantages of the sales department:
- Lack of sales training: dealing with objections, identifying / shaping needs, presentations, qualifications and “squeezing”
- There are no support tools such as push response templates, FAQ templates, etc.
- The portrait of a potential client is spelled out, as are the decision-making factors, but, unfortunately, this is not implemented in the work, since the OP specialists do not know how to use this tool
- Offers with “pushing” clients for each stage of the funnel are not spelled out
- Working out of customer objections and doubts is not spelled out
- Closing customers comes from good product knowledge, not sales technician
- Communication with the client is conducted in the “technical language of marketing”, and it is not always clear for the client.
Modulo output: There is a lot of work to be done, starting with training managers in certain aspects of work and ending with the precise “addressing” of incoming requests.
Module “Business Processes”
Business processes in the company are spelled out perfectly – there is nothing to complain about.
Module “KPI and motivation”
- There is no clear decomposition of goals and objectives for a month, weeks, days: how many new customers need to be attracted, what conversion to sale should be, what exact amount should be earned broken down by week / day
- There is no reporting form in the sales department: both for managers and for ROP (report on the work done for the day / week / month)
- Short-term and long-term motivation system has not been developed and implemented
- Demotivation for the lack of comments on transactions, for the absence of a task, the absence of an attempt to work out customer objections, overdue tasks, being late for work, a report on the work done is not spelled out. Both in isolated cases and in constant
- Separate motivation is required to work with “cold” and “warm” bases
- There is no increasing or decreasing coefficient for the fulfillment or non-fulfillment of the sales plan
- There is no intangible motivation system: ratings / gamification, the title of “best employee”, etc.
- ROP also lacks demotivation – he cannot be fined in case of failure, he works for a net percentage of sales!
Modulo output: employees are not motivated to achieve quick results, work with new clients, increase the average check, etc. The sales department is in a state of “comfort” or “stagnation”.
If the results of employees do not grow, then the motivation system is built incorrectly!
Sales funnels in CRM are built almost perfectly, as are analytics.
Recruitment and Training System Module
- There is no training for employees in the company “knowledge base”: “best” and “worst” calls, scripts, objection processing, checklists, customer portraits, sales manuals, employee certification, etc.)
- There is no prescribed “portrait of a company employee”
- Lack of sales training
- The “employee development card” is not registered.
Conclusion after audit
A month before the start of our “marathon for pumping sales departments” came to the company “Leadme” new ROP. Maybe he has not yet managed to adapt to work in the company and does not fully know all the processes? Or is there work to be done specifically to debug the interactions between ROP and sales managers? We’ll find out soon. Since the third participant is already in the ranks, it means that the marathon has started!
The results of the audit of the first participating company can be found here, and second – here…
From the editor: We will start publishing articles with the results of the marathon in April. Subscribe to our telegram channel and stay tuned!