This can be a difficult question for sales executives to answer. But like any potentially complex problem, try to start at the beginning and try to break it up into bite-sized chunks.
As a sales leader, you want to make sure you’ve uncovered the root cause of the dip in sales before you take action.
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In this post, sales leaders will learn about three critical first actions to take when your reps are not hitting their quotas:
- Do a Deep Dive Into the Numbers First
- Is It Endemic to the Team or Just a Few Reps?
- Take Appropriate Action
First things first:
Do a Deep Dive Into the Numbers
This may help you uncover deeper issues such as:
- Are your quotas set properly? According to online sales resource company PlenAire Strategies, it can take 5-10 iterations to get your quotas right!
- Are there identifiable sales trends from previous quarters, years, etc?
- Is there a more fundamental problem in your sales funnel, lead gen platform, sales and marketing campaigns, etc?
- Are you coming off a successful marketing campaign or seasonal sales surge?
- Are There External Factors? Are there new competitors in your space? Are there new pricing models from competitors that need to be addressed?
Is it Endemic to the Team or Just a Few Reps?
Deals tend to slip from quarter to quarter and quotas vary among individual reps, etc. These are blips on the radar screen. These issues can be addressed in the course of quarterly reviews and one-on-one meetings with your team members.
As a sales leader, you’re looking for trends, the icebergs on the radar, that can negatively impact your whole team. These macro-issues can lead to enterprise-wide adjustments such as price changes, adding sales staff and office locations, long-term product enhancements, and other enterprise-level changes.
As a sales executive, you need to be especially vigilant for these enterprise-level course corrections.
No matter what the issue is, as your company’s sales leader you need to take appropriate action.
Regardless of the reason for your sales decline, you will need to take action. The dip in sales may be simple, complex, temporary, or permanent.
A deep dive into the numbers, and excellent communication with your sales team, will help you understand the core issue and its magnitude. Once you understand the core issue, you can take appropriate action, either at the individual rep level or at the enterprise level as necessary.
This ability to problem-solve is an innate ability of all great sales executives!
Are you a hiring manager or HR professional with a sales, or sales executive, job search underway?
At SMR Group, we help clients just like you find that perfect candidate every day!
Call us today at 908-789-2001, or get in touch online. Our expert recruiters are waiting for your call.