In these difficult times, make sure to shake up your sales processes.
Major sales force changes are disruptive to how sales teams work and to the systems that support them. A poorly-orchestrated change can damage customer relationships, hurt the top line, and threaten salespeople’s sense of control and self-esteem. Not surprisingly, corporate leaders and business owners will often wait to implement major changes until a significant event forces them to do so.
A crisis like the COVID-19 pandemic makes sales leaders, managers, and salespeople more receptive to change. In these days of pandemic, the key challenge resides in deciding what to change. Beyond the forced move to virtual connection, sales organizations are dealing with some critical questions. How will customers buy in the future? How much of the sales process will remain virtual? What does this mean for sales organization design, sales success profiles, sales incentive structures, and other sales management decisions?
Four issues need urgent attention now, as changes will only get harder to implement as time passes.
Rethinking the Sales Process
Even before the pandemic, buyers had jumped ahead of B2B selling organizations in their digital savvy. Buyers’ expectations were shaped by online buying experiences with the likes of Amazon and Netflix. Three factors contributed to the slow progress of B2B selling organizations with digital.
First, boosting digital and virtual selling usually meant taking some customers or sales tasks away from field salespeople. Salespeople naturally resisted, wanting to keep control of every step in the process.
Second, sales leaders held back as they weighed the risk of disrupting customer relationships.
Third, as the rigidity of technology collided with the fluidity of B2B selling, digital system implementation was fraught with delays and had questionable impact.
As the pandemic affected every aspect of life and work, we saw two years of digital transformation in two months. The technical barriers to change are falling rapidly. Salespeople and customers are ready to change. Customers are getting used to this new buying experience. To move forward, it is important to know when field salespeople will still be prominent or dominant in the sales process and when they will have a diminished role.
The key is to align in-person sales channels with buying complexity and buyer uncertainty. Sales organizations shall eliminate or reduce in-person visits in simpler selling situations, including:
Straightforward buying steps (sharing information, placing orders)
Customers who are comfortable with virtual connection
Decision makers who already know what to buy, especially on repeat purchases
Sales organizations shall return to primarily in-person selling in complex situations, including:
Customers who have undefined needs or are unsure about a solution
Circumstances requiring collaboration and creativity
Buyers with many decision influencers
Resizing and Restructuring the Sales Force
Sales process redesign necessitates rethinking sales force size and structure. When work shifts to digital and virtual channels, downsizing the field sales force is likely to happen.
Sales force downsizing is an obvious consequence for industries badly hurt by the pandemic, such as travel and transportation. But other industries are downsizing field sales forces as well. During the pandemic, customers discovered that service personnel were better equipped to help them with service issues than they expected.
Changing the Sales Success Profile
Changes to sales processes and roles create a need to rethink the sales success profile. Digital fluency was forced on sales teams in the pandemic. Going forward, salespeople, managers, and leaders will need other new capabilities as well.
Some manufacturers rebounding from the pandemic are redefining theirsales success profile to deemphasize relationship-based selling skills and focus more on the empathetic, value-based selling approach that informed customers prefer.
Other sales organizations are adapting to the multichannel sales environment by bringing more team-oriented salespeople on board.
The profile for sales managers is changing as well, emphasizing adaptability over the ability to direct structured processes.
A new sales process and success profile can create a need to redesign incentives to reinforce sales role changes. Furthermore, incentive plan redesign can address unresolved issues that were emerging before the pandemic began. Changes to consider include the following.
Matching pay with value: As selling shifts from field sales to inside sales to digital channels, the pay level for each sales role needs to adjust to match the work performed and value added.
Changing the pay mix: In some cases, selling is becoming more multichannel and team-based. Yet, salespeople still earn large incentives tied to individual short-term results. It could be time to shift the pay mix to a larger salary and less incentive, or to tie incentives to metrics reflecting team-based rather than individual performance.
Rethinking plan type: Industries such as office supplies and medical supplies have high carryover sales. Yet these industries often pay salespeople commissions from the first dollar of sales. Switching to an incentive plan that pays for meeting and exceeding sales goals can motivate more sales effort and drive growth.
Aligning metrics with strategy: For example, say salespeople earn incentives for achieving a combined sales goal even though products have different margins or strategic value. It is a good time to revise the incentive plan to emphasize some products over others.
There are cascading implications to all these sales force changes.
A new sales process has impact on sales roles and organization design, which affects the success profile, the incentive plan, and more. Alignment across sales decisions and programs is essential as corporate leaders and business owners implement these and other challenging sales force changes.
Michel Ouellette JMD, ll.l., ll.m
Systemic Strategic Planning / Crisis & Reputation Management
If this content helps you to contend with coronavirus and other challenges, please consider subscribing to our website
It will be 2022 before any semblance of normality. Let me help you navigate through this COVID-19 Pandemic. Benefit from our 30 minutes "FREE" online Consultation