A sales team’s performance highly affects a company’s overall health. A company will not survive for very long without adequate revenue or profit. It makes it critical for sales teams to perform at their peak levels. However, many factors can negatively impact sales team performance. Here are five of the most common:
A Sales-Focused Approach
A sales-focused company only looks at the number of sales made each day without considering other factors such as customer satisfaction, retention, or quality of the service. It means that a company is only as good as its last sale. Such a company heavily relies on sales quotas.
What is sales quotas? These are the numerical targets that a company’s sales team is required to hit each month. Quotas are often unrealistic and set too high, leading to demotivation, unethical practices, and a high employee turnover. In some companies, if a team member doesn’t meet the targets, they’re usually given a few chances to improve before letting them go.
Micromanagement is the process of controlling or closely observing someone or something. In a sales context, managers hover over their salespeople, second-guessing their every move. They might even call customers themselves or tell salespeople what products to sell. It breeds resentment and a lack of trust between the manager and the sales team.
Team members need the freedom to experiment and find their way of doing things. They need to know the manager has faith in them and is willing to give them the space to succeed or fail. Let them learn from mistakes without fear of reprisal.
Let the salespeople know your products inside out and understand the industry well. Train them on soft skills such as active listening, emotional intelligence, and how to handle objections. It all starts with onboarding the right candidates.
If they’re not a good fit, no amount of training will enable them to succeed in the role. How do you know you’ve onboarded the right people? Offer a tryout period before making things official. For instance, give them a small sales target within their first two weeks on the job.
Lack of Motivation
Understand the factors that can demotivate the team. It could be anything from unrealistic quotas to a bad working environment. Maybe they’re not given adequate support or recognition for their efforts. Whatever it is, find out and address the issue as soon as possible.
Start by creating a conducive work environment. Which tools, processes, or systems can you use to make the team’s job easier? Additionally, encourage an open-door policy where employees feel comfortable approaching their managers with problems. Finally, offer incentives such as commissions, bonuses, or paid time off for meeting sales targets. These keep motivation high and sales team performance up.
Communication is key to maintaining a cohesive and productive sales team. Make sure everyone is on the same page by holding regular team meetings. Use these meetings to update new products, strategy changes, or industry news. If there are problems, encourage people to speak up.
Invest in collaboration tools such as video conferencing and instant messaging to facilitate communication. These come in handy when team members are in different locations or time zones.
Avoid Costly Mistakes
A highly motivated, skilled, and effective sales team assures you of continued business success. By understanding and addressing the issues that lead to a decline in performance, you avoid the costly mistake of losing good customers. You may also end up losing talented salespeople to your competitors.