The successful sales strategy must be based, among other things, on a solid sales force organization. This is where we focus today. A well-organized sales force will boost sales growth.
Analysis Phase
Before you start sales planning, you should complete a contextual analysis: what the potential market is, what kind of customers you want to get, where are they and how big they can be. Then consider your product portfolio: Do you have a wide range of products? Will those require sales specialization?
There are 4 main models of sales force organization. These are: an organization by product, by customer, geography or mixed model. Each of the models has different levels of effectiveness, depending on the activity or business model of the company.
Finally, what resources are available: can you sell online? How many commercials do you have in the sales force and how can you allocate them.
Organization by Customer – Account Based Selling
When we have strategic customers with different sizes and weights, their allocation by salesperson may be the best way to increase sales potential. A plan with strategic accounts or account based selling, allows a differentiated treatment and appropriate to the specific needs of the company. It may be the best way to increase the efficiency in the development of the business relationship, while also contributing to increase retention and loyalty rates. Geographically dispersed customers or high specificity in their requirements may be managed by specially trained commercials. They must be categorized by size and assigned according to the rep’s expertise. Consider, however, the impact on your budget. If you have geographically distant customers, you may cause an additional impact on costs.
Geographical setup
A geographical setup is very common in companies with national presence and which intend to reach more distant markets. In this model, the sales rep is responsible for a region or geographical area and will be its full manager. Will have close proximity to the customer, depending on the perimeter traveled.
On the other hand, the seller must be a generalist, master a wider range, not being able to be expert by product. He or she sell all products and this may have an impact on effectiveness. The region must also be carefully defined so that it does not run out quickly or, on the contrary, generate waste for being too large. It may also require additional resources such as team managers with regional breadth or logistical reinforcement.
Products
Organizing by products or product lines requires a high degree of specialization. It can, on the one hand, be motivating and a step in the career evolution of a sales professional. Applicable to models with many products that require more technical knowledge. It can be a determining factor in increasing sales of a product.
This should, on the other hand, take into account the cost structure, as the specialist sales rep will have to travel more and more territory. The plan should consider effectiveness in customer relationship management and possible impact on the generated image: do we want to have more than one person contacting the same customer?
Hybrid models
In certain business models it may be more effective to have niche-tailored models with more tactical approaches aimed at increasing the performance of strategic product sales.
A mixed organization with a geographic nature for less specialized products and a plan for products that require a more technical approach. You can also have strategic customers who need a closer, more personalized relationship because of the weight they have on your business. These can be allocated to key account managers. It will ensure a more effective coverage and execution of the defined strategy.
Ultimately, you must be aware that you have to generate the best customer experience and future customer loyalty.
Finally, the strategy must be dynamic and evolve as the business needs to ensure expected sales performance.
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