Sales People or Order Takers

Sales People or Order Takers

Author
Discussion

BGARK

Original Poster:

5,493 posts

246 months

Wednesday 23rd September 2015
quotequote all
I have had no end of disagreements about this subject.

But why do some companies employ people as "sales people" when all they do is "take orders", with minimal proactive input.

Any thoughts on this or maybe I am missing something..

Simpo Two

85,323 posts

265 months

Wednesday 23rd September 2015
quotequote all
Guess it depends on whether the world is beating a path to their door or not. When I bought my house - in one of the previous housing booms - they could have got away with no staff at all - just post a cheque!

BGARK

Original Poster:

5,493 posts

246 months

Wednesday 23rd September 2015
quotequote all
Simpo Two said:
Guess it depends on whether the world is beating a path to their door or not. When I bought my house - in one of the previous housing booms - they could have got away with no staff at all - just post a cheque!
Aha exactly, so you made the concious choice to buy a house all by yourself, from that point on you only needed some research materials to make a judgement, and a bloke with keys to let you in.

If you had no plan whatsoever to buy a new house and some random person bumped into you and convinced you to buy a house, that would be a real sales person!

Jockman

17,917 posts

160 months

Wednesday 23rd September 2015
quotequote all
If you target them to sell they will sell. If you target them to take orders......

Think about the KPIs and targets you need to achieve the desired outcomes.

BGARK

Original Poster:

5,493 posts

246 months

Wednesday 23rd September 2015
quotequote all
Jockman said:
If you target them to sell they will sell. If you target them to take orders......

Think about the KPIs and targets you need to achieve the desired outcomes.
Do you have a specific example you could explain?

Jockman

17,917 posts

160 months

Wednesday 23rd September 2015
quotequote all
I don't know your business. Many businesses have core products and added value ones. Target staff for those added value ones and pay commission on them.

Target them for new custom on both types of products. Agree a suitable commission level eg 5% of net sales for 6 months the a rate of 2% for 6 months.

Target them on physical visits and or digital contact. Qualify and score them on the quality of that contact. Score them on how they interact with other parts of the business - no point guaranteeing an order that cannot be made or delivered.

Think in qualitative as well as quantitative terms. The seeds of the the sale tomorrow may have been sown yesterday.

Remember they are human beings. They need managing, motivating and rewarding properly.

BGARK

Original Poster:

5,493 posts

246 months

Wednesday 23rd September 2015
quotequote all
Jockman said:
Remember they are human beings. They need managing, motivating and rewarding properly.
So based on all the tasks listed another person needs employing to manage whether they are achieving their tasks whilst keeping an eye on them.

JustinP1

13,330 posts

230 months

Wednesday 23rd September 2015
quotequote all
Jockman said:
I don't know your business. Many businesses have core products and added value ones. Target staff for those added value ones and pay commission on them.

Target them for new custom on both types of products. Agree a suitable commission level eg 5% of net sales for 6 months the a rate of 2% for 6 months.

Target them on physical visits and or digital contact. Qualify and score them on the quality of that contact. Score them on how they interact with other parts of the business - no point guaranteeing an order that cannot be made or delivered.

Think in qualitative as well as quantitative terms. The seeds of the the sale tomorrow may have been sown yesterday.

Remember they are human beings. They need managing, motivating and rewarding properly.
Perfect answer there, OP.

Jockman

17,917 posts

160 months

Wednesday 23rd September 2015
quotequote all
BGARK said:
So based on all the tasks listed another person needs employing to manage whether they are achieving their tasks whilst keeping an eye on them.
Cost benefit analysis. If it entails setting up an entire new team then do the maths. If it involves adding to an existing team then redo the maths. As I say I don't know your business.


BGARK

Original Poster:

5,493 posts

246 months

Wednesday 23rd September 2015
quotequote all
JustinP1 said:
Perfect answer there, OP.
Agreed but what is apparent is you also need the right skills to manage sales people, hence if good systems are not in place employing a sales person no matter how good they are could be a disaster.

BGARK

Original Poster:

5,493 posts

246 months

Wednesday 23rd September 2015
quotequote all
Jockman said:
Cost benefit analysis. If it entails setting up an entire new team then do the maths. If it involves adding to an existing team then redo the maths. As I say I don't know your business.
All sensible advice, will come back to this... thanks.

JustinP1

13,330 posts

230 months

Wednesday 23rd September 2015
quotequote all
BGARK said:
JustinP1 said:
Perfect answer there, OP.
Agreed but what is apparent is you also need the right skills to manage sales people, hence if good systems are not in place employing a sales person no matter how good they are could be a disaster.
Yes.

How you motivate salespeople can have unexpected consequences it the repercussions are not thought through.

andy-xr

13,204 posts

204 months

Thursday 24th September 2015
quotequote all
I used to have a boss who's take on forecasts was to ask us what was incoming vs what was outgoing or proactive vs reactive. In his mind, the reactive business, the incoming enquiries were worth less than the outbound proactive stuff, as in - his sales guys werent doing their jobs properly if they were picking up a call coming in, but it was definitely OK for them to make 100 outgoing calls to get a meeting. The 100 calls would take a day, the meeting might take a half day.

Put against increasing the number of warm leads, it wasnt an efficient use of time.

The thing he didnt really understand was the company strategy, as in how it wanted to develop the market was through Marketing, who spent fkloads of money trying to get the company, brand, product and messaging to a point where Sales get better, more qualified leads to explore.

If you imagine that the addressable market, 80% of them dont know they want to buy your stuff, 10% might buy, 5% will never ever talk to you and 5% are actively looking, that's about the market that we were selling in to. The customers needed fairly consultative approaches, figuring out what their business problems were, fixing them with technology widgets. It was a 4-12 week sales cycle

He wanted to hit the 80% segment because it had a larger market capitalisation, but forgot about the stuff that just needs guiding in, developing, closing and moving on. Too macho-bullst 'we create something from nothing' and way too much ego. Couldnt see his own failings either which made him a really bad manager


berlintaxi

8,535 posts

173 months

Thursday 24th September 2015
quotequote all
BGARK said:
Jockman said:
Remember they are human beings. They need managing, motivating and rewarding properly.
So based on all the tasks listed another person needs employing to manage whether they are achieving their tasks whilst keeping an eye on them.
Eh, ain't that what the Sales Director should do as part of his duties?

berlintaxi

8,535 posts

173 months

Thursday 24th September 2015
quotequote all
BGARK said:
Jockman said:
Remember they are human beings. They need managing, motivating and rewarding properly.
So based on all the tasks listed another person needs employing to manage whether they are achieving their tasks whilst keeping an eye on them.
Eh, ain't that what the Sales Director should do as part of his duties?

BGARK

Original Poster:

5,493 posts

246 months

Thursday 24th September 2015
quotequote all
berlintaxi said:
Eh, ain't that what the Sales Director should do as part of his duties?
So lets say you are a smallish sized business, and you have invented / made a great product. Do you first employ a sales director, business development manager or other type of manager before you consider employing a sales person?


berlintaxi

8,535 posts

173 months

Thursday 24th September 2015
quotequote all
BGARK said:
berlintaxi said:
Eh, ain't that what the Sales Director should do as part of his duties?
So lets say you are a smallish sized business, and you have invented / made a great product. Do you first employ a sales director, business development manager or other type of manager before you consider employing a sales person?
Your business development manager should be a salesman, and then you can develop them into a directors role as the company grows.

BGARK

Original Poster:

5,493 posts

246 months

Thursday 24th September 2015
quotequote all
So... don't employ a sales person, employ a business development manager.

berlintaxi

8,535 posts

173 months

Thursday 24th September 2015
quotequote all
That's what I would be doing.

Sheepshanks

32,705 posts

119 months

Thursday 24th September 2015
quotequote all
BGARK said:
If you had no plan whatsoever to buy a new house and some random person bumped into you and convinced you to buy a house, that would be a real sales person!
In my industry we call that "demand creation".