A new study reveals more than half of sales managers are falling short of their goals in 2011. Here’s how to correct mistakes and come back strong in 2012.
Fifty-two percent of sales managers expect to come up short in terms of the annual goals they set at the beginning of 2011, according to a recent Sales Benchmark Index poll. This may be due to the optimism at the beginning of the year of most financial analysts who assumed the economy would rebound at some point this year, and it may be due to C-level execs who pressured managers to simply “find a way” to get sales back on track.
The bottom line is 2011 is not turning out to be the year most managers might have hoped for.
So the question becomes: How do you correct that mistake in 2012 and develop lofty, yet achievable forecasts?
A couple of key strategies:
1. Exploit your niche. Rather than diversifying into countless markets that may or may not yield positive results, base your approach on three different types of specialization:
- Industry expertise. The more specific an industry or market, the more prospects will insist on doing business with qualified experts.
- Funneling leads by niche (not region). Recalibrate your sales model so reps are matched with the products and services they sell best.
- Developing sales teams based on product lines. These sales teams should work together, share research info, refer prospects and create their own group goals. This way, reps are competing and learning on a level playing field, which should up the ante.
2. Allocate resources based on return. Make sure your budget, bonuses and comp are all set up to finance and reward the campaigns and salespeople that generate the most revenue. Far too often departments spend a tremendous amount of time and resources pursuing initiatives that provide little return for the company.
Source: “Two Impactful Secrets for Success in 2o12,” Sales Benchmark Index.