Sales
Managers Limiting Revenue Growth?
By
Dan Ahrens, CustomerCentric Selling® affiliate. Contact
him via email or
phone at 707-538-4776
While we know that revenue production has nothing to do with
the time it takes for the earth to rotate around the sun,
the financial community and senior management is constantly
driven to correlate these two seemingly disparate things,
forcing salespeople and buyers into un-natural acts as they
force-fit revenue into quarters.
How does this happen, that sales managers help perpetuate
the stereotype of the pushy, aggressive salesperson who expects
to discount to win the business? Here's how it happens - quarter
after quarter: senior management is concerned that revenue
will not meet forecast, so they put pressure on sales management
to "make something happen." Sales managers then put pressure
on salespeople to "close that thing", and the only way this
can happen any sooner is for the salesperson to "push" the
buyer into a faster decision, or providing an incentive in
the form of a discount.
How many sales are lost by salespeople pushing too hard during
the sales cycle? How many more sales have to be closed each
quarter because of the unnecessary discounting that decreases
margins with every concession? How many large deals are turned
into the smaller opportunity that can be closed now?
How many sales managers are working contrary to the company's
growth plans?
While we know that this quarterly pressure will always be
a fact of life within most sales organizations that are focused
on growth, it is also a fact that the only way salespeople
will modify their behavior is if sales managers first
modify their own behavior and develop skills
to manage revenue production better.
The primary sales manager behavior that should be modified:
An imbalance of discussions revolving around asking "What's
coming in, by when?" Instead, create a balance between
the questions that revolve around the forecast with questions
like "Do you have enough in your pipeline to have a predictable
revenue stream at all times?" or "How is your current pipeline
setting you up to meet targets next quarter; the following
quarter? If you have a forecast call every Friday, have a
Pipeline call every other week as well. Separate the pipeline
and forecast conversations so as not to confuse the focus
of either conversation. Watch out! Without a separated conversation
focused on pipeline, it is easy to fall back into the more
comfortable and habitual forecast discussion.
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