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Want to Boost Technology Sales? Incent
Your Support Staff
By Kendra Lee, President, KLA Group
Clues for sales are everywhere, and many times they fall in the
lap of someone who is not part of your company's sales team. While
most of these leads are passed along to a sales professional, it's
not a bad idea to provide incentives to the support team to continue
to look for clues.
This proactive approach will get more employees involved in the
search for sales leads and keep them from sitting idly by when new
business opportunities come their way. It's important that all members
of your company's team understand they can contribute greatly to
improving the company's bottom line by becoming proponents. Once
they realize this responsibility, and understand that they're only
helping themselves and their own job security, the results come
quickly.
To help achieve this understanding, many companies are choosing
to establish bonuses or even commissions for their tech team when
they contribute to a sale. This added incentive may be all it takes
to drive sales, and there are a number of ways to implement a successful
plan.
Here are some things you can do:
Bonuses
The challenge with many professionals who are not part of the sales
team is that they are "risk adverse" (a good reason for not choosing
to work as a salesperson on commission). With bonuses you can incent
people to focus on your current priorities. No pre-planning. No
thinking a year in advance to identify what you think the market
will want you to sell.
With the support team you might pay bonuses for every qualified
lead or even changes in project scope that they close. When you
feel a need to quickly focus on a specific product or the need for
leads in general, establish and announce a bonus to be earned with
in a defined time period – then watch people's behaviors change.
Management by Objectives
Management by Objective (MBO) operates similarly to a bonus, except
it requires a bit more planning. MBOs are established as a part
of a person's commission plan with a defined quarterly dollar amount
set aside for accomplishment of pre-defined objectives. At the start
of each quarter, the manager identifies 3-5 objectives for the individual
that can be accomplished within the quarter. The objectives must
be measurable, so success or failure is clear at the end of the
quarter.
The best objectives are ones a person can accomplish without outside
resources that can hinder success. MBOs can be earned in part of
whole depending on the individual's results. Examples of support
staff MBOs might be to revise the current company sales demo or
meet with three new manager-level contacts at the customer site.
Adopt a leveraged plan
A leveraged plan merely says the compensation plan includes components
beyond salary. If the compensation plan includes MBOs or commissions,
it is leveraged. Support staff typically prefers compensation plans
with less risk, or leverage, than a sales person. MBOs are the least
risky. A company may choose to add a commissions component to encourage
support staff to consistently find, develop and close specific types
of opportunities. Typically these are up-sell or renewal opportunities
associated with a project, maintenance renewal, or additional product.
One organization is training its phone technical support staff
to close the sales on recommendations they make during support calls.
The technicians already have the customer's trust and understand
the customer's needs. Even with the commissions being paid to the
technicians, their cost of sales are decreasing while customer satisfaction
and revenue are increasing.
Once a compensation plan has been established, it's critical to
provide training to help people feel they are being given the skills
and tools to meet the new expectations. Goals are fine, but unless
people have a clear understanding of how they can reach those goals
the effort won't follow.
If you are expecting your support people to uncover leads on current
projects or during customer service calls, train them in listening
and questioning for needs. If your expectation is they will close
opportunities, train them to handle objections and close the sale.
If your expectation is to expand the company's base of contacts
in an account, train them to ask for referrals and listen for openings.
Management Coaching
Once you've trained the support staff, remember to support them
through management coaching. Coaching sessions will help your management
team reinforce and model the behavior you are expecting from the
support team.
Compensation planning is tricky. You want to motivate your people
while focusing on the company's strategic initiatives. It's a delicate
balance that isn't always the same for every employee, yet done
right, can reap rewards far beyond the expectations of a person's
role.
With the right compensation plan in place, your entire team will
get more involved in looking for sales leads and take satisfaction
in the fact that they are benefiting from the sales generated by
their efforts.
Kendra Lee is author of "Selling Against the Goal"
and president of KLA Group. Specializing in the IT industry, KLA
Group helps companies rapidly penetrate new markets, break into
new accounts and shorten time to revenue with new products in the
Small & Medium Business (SMB) segment. Ms. Lee is a frequent
speaker at national sales meetings and association events. For more
information, contact the company at +1 303.741.6636 or info@klagroup.com
or visit www.klagroup.com.
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For information on sales training, call 303-741-6636.
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