Know-How Exchange : Research/Metrics

Peter,
Your question is one that many companies face. Especially when orders flow from customers with an established sales history. Your question does not provide all of the background so if I cover points you already deal with please forgive me.

First their needs to be a Targeting Process. What companies are your best prospects? This should include size, organizational structure, the kind of problems they face and the products you have that will open the door.
Sales people should be asked to rank these - for potential for success. With a time line. The list should be reviewed and progress made tracked - this includes whether they have placed a first time order.

I know of a couple of companies who continually chased big accounts only to discover their infrastructure (electronic order entry, billing and other procedures lacked what it took to provide value to the 100 million dollar business, but was set up for the 10-20 million dollar business). This was costly to fix so during the recession they refocused on smaller independent companies and saw sales grow.

Secondly, existing customers should be reviewed for what they buy. What percentage of your full catalog to they buy? Until you understand which customers are only a part of your offering and why, your efforts will be hampered.

Third (not last but time prohits 100 points), you need to understand what percentage of your sales people's time is spent servicing business as opposed to developing new. Many times detailed understanding of this allows for reorganization of sales with better utilization of lower cost people for the servicing side.

All of these are aspects of Targeting. Research indicates that companies with Targeting Strategies enjoy a 47% advantage in reaching financial goals.

This all wraps around building a process. Many people have outlines which they pass as process. Salespeople will resist process because they perceive it as a threat to their autonomy. But, this is a great time to start rebuilding your process because of the economic crisis we find ourselves facing.

And, as President Obama's Chief of Staff has been quoted, "it is a shame to let a good crisis pass without taking advantage of the situation."

I would be very interested to know if you are a sales vice president or vice president of sales and marketing them with direct supervision of the sales staff, or if you are a marketing person attempting to encourage the sales team to spend more time marketing and generating leads.

There is unfortunately often too much friction between sales and marketing departments. If I were personally trying to move the sales team towards prospecting more, and the salespeople reported to me, I would implement it as a series of gradual steps which are incentive-based, so that I would not rock the boat all at once. On the other hand, if I were a marketing person attempting to impose discipline on a sales staff who did not report to me, I would begin by selling the CEO and the VP of sales on the program, and make as many changes early as I could.

It seems to me you are asking, in part, whether salespeople should primarily be motivated by commissions on sales or by incentives and other programs designed to change their behavior. As a former sales guy, I say pay them primarily on results.

Sorry if I'm off base, but I'm trying to read between the lines as best I can. If you provide more information ( are the salespeople employees or agents? are the salespeople guaranteed commissions on all sales in the territory? Are you selling to dealerships and repair shops in addition to manufacturers?) Then we can provide more targeted answers. The best of luck to you.