Time, Territory, and Self-Management: Keys to Success
I. THE TREE OF BUSINESS LIFE: TIME
A. People spend time doing what is most important in their lives.
B. Using your time in a career to help others results in a wonderful life.
A. Sales territory - comprises a group of customers or a geographical area assigned to a salesperson.
B. Why Establish Sales Territories?
1. To obtain thorough coverage of the market.
2. To establish each salespersonís responsibility.
3. To evaluate performance.
4. To improve customer relations.
5. To reduce sales expense.
6. To allow better matching of salespeople to customer needs.
7. To benefit both salespeople and the company.
C. Why Sales Territories May Not Be Developed.
1. Salespeople may be more motivated if not restricted by a territory.
2. Company may be too small.
3. Management may not have the time or know-how for territory development.
4. Personal friendships may be the basis for attracting customers.
III. ELEMENTS OF TIME AND TERRITORY MANAGEMENT (TTM)
A. Salespersonís territoryís sales quota Ė The salespersonís manager typically establishes the total sales quota that each salesperson is expected to reach.
B. Account analysis.
1. Identification and estimate of sales potential.
a. The undifferentiated selling approach - use the same approach on accounts which are basically the same.
b. The account segmentation approach - accounts that have heterogeneous needs and differing characteristics require different selling strategies.
(1) Key account.
††††††††††† i.† ELMS system
††††††††††† ii. 80/20 principle
(2) Unprofitable account.
(3) Regular account.
2. Multiple selling strategies Ė selling strategies vary depending on the account.
3. Multivariable account segmentation Ė using more than one criterion to characterize the organizationís accounts.
C. Develop account objectives and sales quotas.
D. Territory-time allocation. Seven factors to consider:
1. Number of accounts in the territory.
2. Number of sales calls made on customers.
3. Time required for each sales call.
4. Frequency of customer sales calls.
5. Travel time around territory.
6. Nonselling time.
7. Return on Time Invested.
a. Sales time should be in direct proportion to potential sales for each account.
b. Break-even analysis may be used to analyze cost.
Break-even point (in dollars) =
Salespersonís fixed costs
Gross profit percentage
c.†† The management of time.
(1) Plan by the day, week, and month.
(2) Qualify the prospect.
(3) Use waiting time.
(4) Have a productive lunchtime; invite prospects.
(5) Keep records and reports.
E. Customer Sales Planning - developing a sales call objective, a customer profile, customer benefit program, and selling strategies for individual customers.
F. Scheduling and Routing.
1. Scheduling - refers to establishing a fixed time (day and hour) when the salesperson will be at a customerís place of business.
2. Routing - the travel pattern that he/she uses in working the sales territory. They enable the company to:
(1) Improve territory coverage.
(2) Minimize waste time.
(3) Establish communication between management and the sales force in terms of location and activities.
G. Using the Telephone for Territorial Coverage.
1. Sales generating.
2. Order processing.
3. Customer servicing.
H. Territory and Customer Evaluation.
1. Territorial control is the establishment of standards of performance for the individual territory in the form of qualitative and quantitative quotas or goals.
2. Actual performance is then compared to these goals.