The new sales planning ABC
Part one of this three-part series offers a step-by-step instruction on establishing more effective sales planning by reviewing and re-determining your client portfolio structure as well as optimizing your client distribution and commissions. The objectives of this new approach are:
- Increasing sales efficiency
- Increasing client satisfaction
- Achieving your personal commission targets
For the individual sales representative, optimizing sales usually means increasing commissions – an attitude that may increase sales in the short term, but doesn’t really serve the interests of the organization nor the representative him or herself. It definitely does not contribute to strong, strategic sales planning. Not for the individual sales expert, nor the team, and least of all for the company. Sales force management and organization management must take the necessary steps to ensure that every individual has a clear understanding of the client structure and can leverage this knowledge to achieve sustained sales success. The initiative for this, however, can also be taken by the sales representative.
Most organizations have established planning systems. But only in very few cases do these systems convey to the sales staff an idea of their client structure. ABC analysis offer a very practical solution to this problem. Its easy-to-use chart allows you to categorize your clients within minutes: A, B, and C clients. These categories are important for your sales strategy as they help you identify clients who will secure your medium and long-term sales success, beyond mere short-term results and commissions. It gives you a new perspective on your client portfolio.
This is a management summary of an article first published in the magazine of Digital Tempus Germany. You can read the full article here in German, or contact me if you wish to have more information about the topic.