(This is the second in a series of posts devoted to Sales Strategies. To read other posts in this series, click the “Sales Strategies Series link in the right column.)
A concept that is typically associated with sales strategy and performance is that results are based on volume and velocity. There’s no question that volume, a company’s capacity to produce or sell a product, and velocity, the speed at which a company performs these tasks, are keys to success in any company’s performance.
Unfortunately, putting this oversimplified strategy into practice confounds even the most experienced organizations. While it may seem practical, reasonable, and wise, it is incomplete. The concept must be taken further to answer “how” to increase both volume and velocity. As enticing as the volume/velocity formula sounds, it’s unrealistic to evaluate a sales strategy without addressing the correlations between volume and resources and between velocity and enablement.
By focusing on resources (volume) and enablement (velocity), we can project our current performance outcomes and develop a strategy to achieve our goals more effectively.
Looking at the chart above, we see that the optimal location for our sales model is in the top right quadrant. Without strong enablement (such as sales training, product marketability, lead generation, etc.) and a deep resource reservoir (such as sales, support, and administrative staff), the sales strategy will not achieve maximum results. Keep in mind, however, that we must be careful not to travel too far right, or too far up. If the dot moves too far to the right, we may end up with sales capacity that exceeds the company’s production capacity. If the dot moves too far up, we may pump more money into enablement than is necessary.
As with most things in life, balance is critical when managing a sales strategy. Remember that effective sales strategies are not “one size fits all.” Because your company’s strategy should reflect your unique products and services, a methodical, analytical process should be utilized to determine the appropriate level of resources and enablement for your company. This analysis will also reveal your current deficiencies and correlating opportunities to increase your top-line revenue.
Tune in next time to learn more about assessing your company’s enablement and resource levels to maximize sales and produce the ideal profit-levels.
Have feedback or insight? Please feel free to use the “Comments” feature located at the top right corner of this post. I look forward to hearing your ideas, experiences, and strategies.