Every business says they have a sales process, however many of these businesses do not have a process so much as an evolved way of doing things. When asked what is working well and what is not the answers are vague at best. It is very hard to measure something that isn’t managed.

A major study in 2006 in the States found that 51% of businesses do not have a standard operating procedure (SOP) for their sales teams. From my personal experience over the past 14 years I would have to say the figure in New Zealand would have to be much higher.

The consequences for these businesses can be very expensive.

Problems caused by the lack of sales procedure include –

• Inconsistency in sales
Which means an inability to budget accurately

• Lack of sales systems and structure
Which means reduced closing ratios

• Poor client management systems
Which means lost clients and opportunities

• Poor reporting and measurement systems
Which means a lack of accountability

• Lack of a detailed sales plan
Which means average results

• Salespeople spending all their time servicing existing and favourite clients
Which means a lack of growth

• Lack of structured prospecting activity
Which means inconsistent growth

While these may not all apply to you, any one of these could be impacting your profitability.

The advantages of developing standard operating procedures for sales include –

A systemised process for selling
Which means – more consistent sales

A systemised prospecting system
Which means – increased numbers of qualified prospects through referrals

Increased closing ratios
Which means – most efficient use of time and increased profitability

Reduced sales cycle
Which means – most efficient use of time and increased profitability

System for maximising existing accounts
Which means – reduced costs of sales

A systemised presentation structure
Which means – increased motivation and confidence of the sales team

The key areas that need to be systemized are –

• Sales Planning
• Prospecting
• Presentations
• Follow-up and 90 day contact system

In these so called tougher times businesses are looking to reduce costs and increase efficiencies. The key area to increased efficiency is in sales.

By developing a systemized approach to the selling process you should be able to increase your sales team’s closing ratio by a minimum of 10%

What would a 10% increase in turnover mean to your business?

My point is it is vital to the success of any business to standardize their sales process. This starts with all of those involved in sales using the same processes and this is achieved through a customized sales training programme which then becomes a standard operating procedure for all the sales team.

Training is the first step – you learn process through training then practice and eventually it becomes habit.

We will begin to look at sales planning in my next article.

Quote of the Week:

“If you always do what you’ve always done you’ll always get what you’ve always got”
Action Step:
To record all your sales processes and identify key areas that need to be standardized.

Brett Burgess is a Sales Trainer and Programme Developer for Sales Impact Group Limited.