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It’s a tale as old as time: Your sales team isn’t meeting its goals. But what can you do to improve sales team performance?
You thought you hired the right people and that everyone was a good fit for the company, so why aren’t they exceeding their quotas, and how can you enable your sales team to perform better?
Sometimes, the issue is the employees themselves, but something outside their control is often to blame. This post delves into the different approaches to take when your sales team’s performance needs a boost. Keep reading to find out more.
Learning how to improve your sales team’s performance is about understanding the many elements that contribute to it. Your team’s success relies on several factors that work together to formulate an effective sales strategy and process.
We’ve compiled seven of the best sales strategies for improving rep performance based on real-world research and case studies so you can get back to hitting your benchmarks in no time.
When your car breaks down, it usually isn’t the best idea to try replacing the transmission yourself without first consulting a mechanic. The same can be said of fixing an underperforming sales team. Determining the source of the problem is just as important as prescribing a solution.
One way Toyota became the world’s sixth-largest company by revenue was through its tradition of asking “why” five times to get to the root of a problem. This technique is just as useful in the salesroom as on the factory floor.
Here’s an example of this in practice:
“My sales team isn’t meeting their quotas.”
1. Why aren’t they meeting their quotas?
“They aren’t closing enough sales.”
2. Why aren’t they closing enough sales?
“They always seem to be focused on closing deals but forget to fill the pipeline.”
3. Why aren’t they filling the pipeline?
“They dislike cold calling prospects.”
4. Why do they dislike cold calling?
“It takes a lot of time and effort to find interested potential customers.”
5. Why does it take a lot of time and effort?
“Because we don’t have a system for qualifying prospects before we call them.”
Whether you ask three or ten times, persistently asking “why” helps you move past the flawed assumption that your sales team is underperforming because they are lazy or unskilled. Now, you’re left with a problem that has a relatively straightforward solution.
Every sales department, cycle, and process differs, so drilling down to the root of the cause may not be as cut and dry in every instance. Understanding the common causes behind poor performance can help pinpoint potential issues and determine how to improve sales team performance.
Some of the most common reasons sales teams fail to perform are:
As “Mr. Inside Sales” Mike Brooks put it, “You can’t close an unqualified lead.” One of the most common reasons why sales teams underperform is the lack of a formal prospect qualification process—or the lack of a sales process altogether.
Having a system for qualifying prospects eliminates the guesswork of who to pursue and who to say “no” to. Start by:
Once you have an automated process in place that identifies who is most likely to convert, your team can quickly follow up and keep their pipeline full.
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In addition to qualifying leads, having a well-documented follow-up process prevents a rep from wondering what to do next. A quality CRM platform can automate much of this process and remind your reps who they need to contact and when.
Related: How to write a killer follow-up sequence that draws replies
CRM platforms also make it possible for managers to track and analyze data around all the team’s accounts so that they can hone in on which follow-up strategies work and which ones don’t.
By establishing clear processes at every stage of the pipeline, your team can perform consistently and better meet its sales goals.
After working in the field and seeing ineffective pay schemes for reps firsthand, Harvard Business School Associate Professor Doug J. Chung went on to study how companies should pay salespeople. His findings went against many of the ways that companies traditionally pay their reps.
For starters, Chung’s research suggests that many compensation strategies used by big companies, such as caps on commissions and increasing sales quotas for high-performing reps, may actually hurt long-term results.
He also supports using a pay system uniquely tailored for each individual, with different components and bonuses in place to keep high-performing, average, and low-performing reps engaged.
Related: 8 ways to retain your top sales reps (after they’ve gotten their bonuses)
Want to explore tailoring sales incentives for individual members of your team? Sales and management training company The Brooks Group suggests the following tangible and intangible incentives:
In every case, keep the personalities and preferences of your individual reps in mind. What motivates one person may turn another off.
Sales gamification is a common strategy for increasing productivity. However, outright competition isn’t always the most effective technique for team productivity.
In one case study, a company with an international sales group pitted reps targeting one country against reps selling to another. When one team began to pull ahead, the low-performing reps were quick to assume that the problem was the market in their target country. As a result, their motivation stalled.
The CEO’s solution? He took the highest-performing reps from the star teams and sat them next to the reps of the low-performing countries. By being in close proximity to the high-performers and learning some of their sales techniques, teams were able to turn their productivity around and begin outperforming within weeks.
Instead of investing in a gamification model that pits your sales reps against each other, consider prioritizing collaboration to close more deals. A cooperative sales culture is not only essential for maintaining a healthy, enjoyable work environment for your employees, but it can also help increase your team’s overall productivity.
Your reps have likely heard a lot of feedback from customers—both good and bad—about the product or service they’re trying to sell. And let’s face it: No amount of sales finesse can truly make up for a flawed product. In this situation, your company may have to invest more into your product development and customer service team.
It might also be wise to take it one step further and ask your sales team for feedback during product development. They’ve been on the front lines and likely have an intimate understanding of customer opinions and market trends.
Not only will your product or service better reflect customer needs, but reps will feel a little more ownership over your product offerings, which can translate into a more authentic and effective sales experience.
Cultivating a positive culture that elevates team morale is a great way to encourage your reps to give it their all and do their best work. And learning how to motivate a sales team when sales are down will do wonders for your team’s performance over the long run.
Employees working in a positive and uplifting work environment tend to be happier and more engaged in their work. The result is typically a more focused and creative team producing higher-quality work. Companies that prioritize team morale also often experience lower employee turnover rates.
Many sales managers rely on motivational quotes as a form of encouragement. The reality is that there are several ways to implement team motivation and enhance morale. A few of the most effective tried and tested methods include:
Having an underperforming sales team and figuring out how to address poor sales performance can be a frustrating situation, but turning things around is often easier than you think. Getting to the root of the problem and taking a creative approach to fixing obstacles for your team can quickly deliver the results you’re looking for.
Investing time exploring the causes of your team’s performance, optimizing strategies, and motivating team members will pay dividends. It will also lay the foundation for better processes and company culture that will remain long after your current reps have moved on and new employees join your team.
Implementing a robust CRM system like Nutshell can help streamline your sales process and elevate sales team performance. With powerful contact and lead management, reporting and analytics, and automation features at your fingertips, you’ll have the tools you need to support your sales performance goals.
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