Tag Archives: sales management

Micromanagement of Sales Representatives: Has it Gone Too Far?

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Micromanagement is the elephant in the room and it is destroying the salesperson-client relationship.

In this day and age, we rely on technology for almost all of our daily activities.  We are easily traceable and accessible to almost anyone, anytime thanks to the electronic devices that supposedly make our lives so much easier.  This can be seen as a huge advantage to an employer who wants to keep tabs on their employees, however in my opinion, Big Brother has gone too far.

BusinessmanRotaryPhoneNot very long ago, a typical salesman would have one “office day” where they used their home or office phone (since there were no cell phones) to schedule their calls for the week.  They would use paper files to keep notes and tabs on their customers and upon their return to the office they would place those orders for their clients.  Sales reports were generated as long paper printouts and filed.  If a salesman didn’t meet his quota, he would simply be out of work.  That was the only form of accountability. Simple and effective.

Now, not only do salespeople have to meet their quota, be available from the moment they wake up until they go to sleep, but their every step can be now monitored by their employers.  

GPS-tracking-deviceI once met a sales representative who had been working for the same pharmaceutical company for over 10 years who informed me that her company had installed a GPS tracking device on her vehicle.  She told me that one day she had some time in-between appointments (3 hours to be precise) and had parked her car to do work on her computer. Over an hour into her “break”, she received a call from head office asking her why she was stationary for so long and not calling on nearby clients. They proceeded to advise her of whom she should call on in her downtime before her next appointment. Can you say creepy? And to the benefit of the rep, I am certain that she was catching up on paperwork that needed to be done and I don’t see anything wrong with that.  In my opinion, time can be better spent tackling your to-do list compared to wasting time cold calling on a client with whom you have minimal potential to do business with.

SignatureOniPadThink that is bad? Well some companies have gone to the next level which I learned in a recent visit to my family doctor.  He informed me that several of the pharmaceutical sales reps who call on his office are now provided with iPads that trace their locations throughout the day which are saved and uploaded to company cloud. Furthermore, the sales reps must acquire the doctors electronic signature on their iPad to prove that they physically met with the doctor!

I don’t’ know about you reading this but if I was a doctor, I would be quite put off by that.  I mean, doesn’t it seem like a ex-con checking in with his/her probation officer? I think forcing that into a sales call takes away any genuine connection or relationship between the sales rep and the doctor. All is it says to the doctor is, “I have to be here whether I like it or not. Please buy and sign here or I will get into trouble.” 

How does this help the doctor, the patient or any client for that matter? Nevermind the fact that It also puts extreme stress on the sales rep and to what avail? Why even bother sending a sales rep? Might as well just send and email or a fax!

And it doesn’t end there. Some companies have even gone as far as requiring access to their employees’ social media accounts such as Facebook and LinkedIn and guess what? It’s completely legal.

robot-businessmanMicromanagement as far as it has come, discourages the creation of value-based selling to the client. If a company wants to treat their reps like robots so they can keep tabs on them at all times and only allow them to say scripted messages, why not just replace your reps with a team of robots?

In terms of what is to come in the future, I am certain that cameras in company vehicles will be the next “thing”.  Just over 1 year ago, Hertz installed cameras and microphones in their “NeverLost” GPS systems and now police officers will be forced to wear body cameras, so why not watch your sales reps as they drive between calls?

Why not listen to all of their sales calls as well so you can interrupt them and provide them with feedback on where they need to improve?

So to all the companies out there who are spending so much time monitoring their sales representatives, why not just hire capable sales people and have faith in them to do what they do best?

How many employees are required to monitor an entire sales force? At what pay grade? For what result? Really.

Sure one could argue that if a sales rep is doing a great job, they shouldn’t be concerned about being monitored but as I mentioned previously, if the client is aware that their rep is being monitored in their meeting, this will damage the rep-client relationship and take away value from the message the rep is supposed to relay to the client.  It is an elephant in the room and it is ruining the sales rep-client relationship. 

So my friends, keep selling and well, you just never know who might be watching you. Or perhaps you do?

If you are in a situation where you are being monitored by an employer, I would love to hear your story and how you feel it impacts your work performance and client relations.

Cheers,

TSW

5 Surefire Ways To Lose Your Best Sales Representatives

iquitWant to Keep Your Best Sales Reps? Don’t Make these Costly Mistakes!

The average sales representative changes employers every 2-3 years.  At any given point in time, I know at least a handful of sales representatives who are looking to make a move.

Why? Because companies make the same mistakes time and time again that cost them their best reps.

What are they doing? In almost all cases, companies are trying to cut costs and increase profitability. The problem is, if you cut costs, service, quality or both will also be sacrificed to some degree.

The most common complaint from managers and business owners that I have heard is that their commissioned sales representatives are making too much money.

BusinessmanBurningMoney

What is wrong with this statement?

If your commissioned sales reps are making a lot of money, it’s a good thing! It means that their sales are good and the company as a whole is making more money. Reps on a 100% salary are another story entirely!  So, the problem is that companies of this mindset are simply being greedy and short sighted thinking that they can try to squeeze the highest level of productivity out of their sales force for a minimal investment.

Some sales managers alike may take issue with the representatives they manage who are making more money than them. Rather than taking pride in being a good manager and celebrating the success of their sales team, they see this as a bruise to their ego and then make detrimental changes to how their reps are compensated.

Whether you are a business owner, VP of Sales or a Sales Manager be sure to avoid making these hefty mistakes which will cost you your best reps and maybe even your entire sales force.

1. Cutting and/or Capping Commission

paycutLooking for a way to slowly poison your sales force and give them a prolonged, torturous death? Cut their incentives or better yet, cap them all together! Salespeople work on incentives, so if those incentives are taken away or significantly reduced, they will either work less or look for work elsewhere immediately.  Some but very few reps will persist and try to work harder to make what they were making previously but that will not last long.  They will eventually leave or burn out and then leave.

2. Territory Realignment

salesterritoryTrying to figure out a way to cheat your reps out of reaching their targets so you can save on paying out those commissions and bonuses? Shift their territories around every 6 months to 1 year.  That way nobody has been in their territory long enough to qualify for their commission or the reps who would have been entitled to a hefty commission, no longer have that account in their territory after the change so they are no longer eligible to receive it.  This strategy also makes it impossible for the sales reps to maintain any working relationships with their clients which is a substantial part of building the business.  Clients don’t want to meet a new rep every year.  It screams that the company is unstable and therefore potentially unreliable. Not only will the business as a whole suffer from this strategy, but it is also more than likely that the company will also lose their entire sales force. If a sales rep has no chance at making their commission or bonus, they will leave.

3. Unreasonable and Unachievable Sales Quotas

Dangling-CarrotFeeling a little sadistic and enjoy dangling that carrot in front of your reps and moving it further and further out of their grasp? Give them a massive increase in sales quota that none of them will be able to achieve.  I have seen well established companies that have been in business for decades implement a new sales target that is 10 to 20 times their previous target for products and services they have always sold and seen regular 3-5% annual sales increases. If a company increases a target, it must be a realistic target that can be achieved by at least 50% of the sales force.   Implementing completely unreasonable and unachievable sales quotas most often results in the resignation of the entire sales force. Afterwards,  good luck maintaining those regular sales increases!

4. Reducing Sales Support

phone off hookWant to leave your sales representatives to hang out and dry? Cut back on their support. Sales people are out there all day long pounding the pavement, pushing the company product or service on their clients and often a situation arises where the rep needs assistance from a manager or from customer service.  When companies make cutbacks in this department, the rep is left completely to their own devices and do you know what most of the good reps will start to think? “Why do I need to work for this company? I’m doing everything myself so I should just start my own business!”. Alternatively, some reps may opt to jump ship and work for another company, perhaps even one of their competitors, who offers better service and support.

5. Dramatic Change in Management Structure and/or Style

DrEvilProjectManagerWant to take your company to the next level? Do it wrong and you’ll take the company to the next level downward! There are multiple ways companies can implement changes to management structure and style.  The most common mistake I have seen are companies that have historically given their reps a fair bit of freedom (and where the reps were successful in that environment) change to a micromanagement system in order to increase accountability and profitability.  This is flawed because simply some reps thrive in a micromanaged environment and some do not. If you change your management style, you will also likely need to hire an entirely new sales force that will fit nicely in that environment rather than resist it.

So if you are reading this article looking for ways to eliminate your entire sales force of “overpaid” sales representatives (without firing them so you don’t have to pay severance) and replace them with entry-level newbies who you can pay 1/3 of their salary, you may have found this article helpful. If that is the case, I hope that neither myself or anyone I know ever works for you.

On the other hand, If you have a great sales force or even just one or two star individuals and want to keep them, avoid making these costly mistakes. It takes a significant amount of time and money to hire and train the right representative, so why put yourself through this process time and time again?

If you need to cut costs, try to look elsewhere in the business where you can implement cost cutting mesures or better yet, try to explore other means to increase your business. Thinking out of the box can be difficult but it can also be immensely rewarding.

In summary, it takes money to make money.  Same goes for people who you invest in as employees.  If your people are doing well, don’t cheat them but rather reward them accordingly. Investing in great employees is a solid investment in your business.

Happy sales my friends.

Cheers,

TSW