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Understanding the Sales Force

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If You Structure Your Sales Force Like the Big Companies...

  
  
  

Dave Kurlan is a top-rated speaker, best-selling author, sales thought leader and highly regarded sales development expert.

Yesterday I read a White Paper about structuring sales forces and it got my blood boiling.  It wasn't that it was a study about sales forces, and it wasn't that it was a study using large companies.  I got upset because of the conclusion - that you should structure your sales force like the big companies.  

When I say big companies I'm talking about technology companies like, IBM, Oracle, EMC, Microsoft, Apple, Dell and HP; I'm talking about financial services companies like, Merrill Lynch, Wells Fargo, Sachs, Citigroup and Bank of America.  I'm talking about automakers like, GM, Toyota, Chrysler and Ford.  I'm talking about manufacturers like Stanley, Sony, Parker-Hanifin, Gillette and Proctor Gamble.

When I say structure, I'm talking about the maze of roles (inside incoming, inside outgoing, telesales, account management, business development, major account sales, national account sales, field sales, territory sales, product experts, channel sales, market-specific sales, etc.), responsibilities (job description, account description, quotas and requirements) and traits (personality traits and you know how that upsets me) required to perform effectively in those roles; and how those requirements match up to customer requirements.

You must understand why the big companies complicate and detail sales force requirements so.  Usually, it is the result of inadequate performance and a consultant (from another big company) doing a redesign based on what they think customers need from the sales force. The funny thing is that these redesigns don't increase sales, they simply add unnecessary layers of sales leadership, and the resulting increase in sales occurs only because attention was paid to the sales force, metrics were put in place, training was provided and new expectations were set. All of other complications are just that.

So what's wrong with all of that you ask?  Nothing - if you are one of the big companies in the Fortune 1000.  But if you have a small or mid-market business, which most of you do, it doesn't work.  Why it won't work for you is simple.  The big companies?  They are all brand leaders.  Selling their products and services is really easy compared to selling your products and services.  They have instant recognition, easily get audiences with their prospects, face little resistance, can buy market share to land desired accounts, spend millions on advertising and awareness, and prospects can't go wrong making a decision to do business with them - it's usually a decision that can be made without risk.

In other words, their salespeople will have success with their prospects regardless of the structure of the sales force and more surprisingly, regardless of whether those salespeople are effective! And your company?  Just have your salespeople focus on finding, selling and closing business every waking moment and make sure you have the right people in those roles, thoroughly train them, hold them accountable to high expectations, coach them every day and the results will come.



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Posted by Dave Kurlan on Wed, Jul 13, 2011 @ 05:27 AM

COMMENTS

You're spot on with the Fortune 1000 companies as I know the real reason Verizon or Xfinity got my business was because I did my homework on what I wanted to have, rather than have someone listen to what I wanted and provide a solution. I've encountered some great customer service folks at both companies, but the sales process was lacking and the hoops I had to jump through were painful at times. Fortunately for them, the pain wasn't enough for me go another route. In those instances, I take it as a learning opportunity for how I can sell my marketing services more effectively.

posted on Wednesday, July 13, 2011 at 10:53 AM by Ryan Breske


I agree with you about not structuring your sales force like the big guys. But how should you structure it at the small and midsize firms other than saying, go out and sell everyday. That's a given.

posted on Wednesday, July 13, 2011 at 12:07 PM by Michael SynK


@Michael - I'll give you my simplified version of this, all dependent on having the right people in each role. 
 
A good rule of thumb is one sales manager per 6-8 salespeople. 
 
 
If the company focuses on and/or has really large customers, they surely need national account managers/farmers for those accounts.  
 
Today's version of inside sales resembles yesterday's version of outside sales, but without the travel.  
 
In industries where salespeople make live visits, inside salespeople would support outside salespeople by handling the transactional business. 
 
A telesales group is nice for setting appointments but two conditions must exist. 1) The company has the revenue or the resources to pay for it; and 2) The existing salespeople aren't capable of hunting to the degree that their pipelines are consistently being stocked and replinished.

posted on Wednesday, July 13, 2011 at 12:18 PM by Dave Kurlan


Good helpful advice. I'll be passing it along.

posted on Wednesday, July 13, 2011 at 9:18 PM by Michael Synk


You had me with this post Dave until I read the comments. Let me share why: 
 
Inside Sales is an umbrella term for a lot of functions. Many of those functions go way beyond setting appointments or supporting the field via transactional business. We live in a world of crazy, busy buyers and those buyers want to be sold to in a manner that suits them... not us. That manner is often: phone and web meetings, content that resonates from introduction through education and a sales rep that serves as trusted advisor. Perfect inside sales scenarios! 
 
Still love the post but just had to share how inside sales has evolved. Thanks for listening.

posted on Thursday, July 14, 2011 at 8:02 AM by trish bertuzzi


don't make it complicated, keep it simple. Great post.

posted on Friday, July 15, 2011 at 9:47 AM by simon


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