Pat’s Blog

“All organizations must be capable of change.” — Peter Drucker

In my travels, a number of people have been talking about how many more prospects they need today to result in a successful transaction. For example, in the past, if it took 10 prospects to achieve a certain conversion rate, now it requires five times that amount to hit the same rate. While there are a number of factors at play here, the simple fact is: What worked yesterday will not necessarily work today. Companies and sales professionals need to be willing to make adjustments if they want different results.

The quality of the sales staff can make a difference. High achievers are constantly prospecting and more readily adjust to marketplace changes while average producers tend to keep doing the same things. It’s not about working harder but smarter.

“Establish specific numerical criteria and goals to measure results.” — Peter Drucker

In today’s business climate, it is more important than ever for managers to understand their costs and sources of profitability. One common mistake managers make is analyzing marketing and selling costs only at the gross levels.

When aggregating at a gross level, management teams can’t tell which marketing and sales activities produced which results. As a result, ROI on specific activities is unknown. Without a loan level analysis, it is impossible to determine how much of your marketing and sales activity produces little or no results. Likewise, what activities produce the biggest bang for the buck is not known either.

To obtain an accurate financial snapshot, marketing and selling costs must be examined at the asset level or loan level. Only then can you determine the true value and costs of your firm’s lead generation.

“The test of an innovation is whether it creates value.” — Peter Drucker

Managers who want to improve their sales results often look at the sales funnel first. The problem with this approach is that a sales funnel is not precise enough for an analysis and improvement process. Only a sales process can be managed and improved.

Because it encompasses a world of potential buyers, a sales funnel focuses inward and involves companies asking “What can we do for the potential customer given his or her position in the funnel?” This is the wrong question to be asking. The better question is to focus outward and ask, “How can we help the customer get what they want at this point in the buying process?” This is a subtle difference but when companies focus outward, it enables the company to add value both for the prospects and their customers in measurable ways.

“The organization’s function is to put knowledge to work.” — Peter Drucker

There is no doubt that ongoing training is essential for better sales performance but how and when sales training is implemented can make a difference in the final results. In my travels, I still see companies using a one-size-fits-all approach and throwing away valuable training dollars in the process. The problem? The information salespeople most need to know varies by individual. The solution? First, test the sales person on his or her sales knowledge and then provide customized training that targets any area that needs to be improved.

One more factor that can impact results: Training must be easily accessible to all participants. Gone are the days when companies hosted lengthy sales training sessions off-site. Web-based custom training that provides 24/7 access to the material is a more cost-efficient method with higher compliance.