A client asks, "My company sells two
different products to two different markets.
Though we offer training and motivating
incentives on both products, the sales
representatives tend to sell a lot more of
Product A than of Product B. There are no
significant issues with our product that
should make it overly challenging to sell:
the price is reasonable, product quality is
good, and competition is minimal. How can we
motivate them to sell both lines?"
Many companies offer products that are sold
to different markets and, like you, are
frustrated when certain of those products
seem to gather dust on the shelf for no
apparent reason. However, from the
salesperson's perspective, there is a
rationale for focusing on one product versus
another. It's all about the sales cycle.
Sales Cycle
Every product that is sold has a unique sales
pattern, and that pattern is learned over
time by the salesperson.
- The salesperson learns to introduce
the product by using certain key phrases that
interest the prospective customer.
- Most of these prospects will voice a
certain resistance to the product in the form
of objections. The sales representative
becomes proficient at addressing these
objections and convincing the prospect to
agree to a demonstration.
- After many tries, the salesperson
learns to how to demonstrate the product in a
proficient manner.
- Finally, the salesperson learns how to
most effectively ask the prospect / decision
maker for their business.
This is the sales cycle and once the
salesperson understands the approximate
length, how it works, and what can go wrong,
they become very practiced and efficient at
selling the product. Selling another,
completely different product involves
learning a whole new set of rules. Every
facet of the sale, from the introduction to
the close, changes. There is a distinctive
cadence to this new sales cycle.
It's Not a Matter of
Intelligence
So could the
sales representatives learn to sell both
products? Yes. If they are successfully
selling one, they probably have the ability
to learn to sell the other. What suffers
when you ask your sales staff to sell two
completely different products is productivity
and expertise. They will naturally be more
comfortable and get into more of a rhythm
with one versus the other. Having to switch
"sales hats" disturbs the flow.
Talk with the Sale
Representatives
Discuss Product B with the sales staff. Ask
a lot of questions about such topics as the
length of the sales cycle and the objections
they are hearing. Though you have offered
training on the features and benefits, make
sure you understand the challenges they face
when they actually try and sell Product B.
Let them know you understand how difficult it
is to sell two vastly different products.
Agree to provide the tools they need (such as
well-targeted lists) to make the job easier,
and follow through on your commitment.
Make Quota and Commission
Adjustments
If Product A is clearly easier to sell, has a
more defined target market, is more
profitable or whatever the case may be,
adjust the sales representatives' quota so
the majority of their sales are realized
through Product A, and offer a more generous
commission rate on Product B. If their quota
for Product B is reduced to a more
reasonable, achievable number and they have
the opportunity to make more money, they may
be more inclined to sell it. You can always
raise the quota gradually over time as the
sales representatives become more proficient
at selling Product B.
Create a Specialized Sales
Team
If you have tried everything else, and
selling both products seems unachievable for
your sales force, you might consider hiring
an additional sales representative to sell
Product B exclusively.
Selling two entirely different products to
two entirely different markets is possible.
All parties involved, however, need to
clearly understand how the sales cycle
differs and what the sales representatives
need to be successful.
Are your sales results in for the first
quarter? Were all of your sales
representatives at or above quota? If not,
don't go too much further into the fiscal
year without investigating where some of the
problems might lie. Diagnosing the issue is
half the battle. Call me to learn how.