Sales are the revenue-driving force of all companies. Therefore, utmost importance should be given to forming an effective sales strategy. A well-thought-out sales plan encompasses all important factors, from defining the target market and creating customer personas, to developing a marketing strategy and choosing the right tools for the effective implementation of the plan. For example, formulating a sales strategy for Spectrum cable plans would be entirely different from that of a cereal product. Each requires different strategy, tools, and metrics.
Steps to Build a Successful Sales Strategy
A successful sales strategy includes the following steps.
Reflection
Before working on the future sales strategy, companies must reflect on their past performance. They should consider variables like their past revenues, sales, customer base, growth in the customer base, retention, marketing plans, and tool used for effective implementation. This will not only help companies analyze their past performance, but will provide a clear picture of market standing and the position of sales with respect to long term goals. It will help strategists identify loopholes in the previous strategy and develop a more effective sales plan. Careful analysis of performance uncovers untapped market areas which can be catered to through an inclusive sales strategy.
Customer Profile
A carefully researched consumer profile is essential to engage potential customers, and video prospecting can be valuable to this process by creating a personalized approach to your customers. A universal rule for sales states that 80 percent of a company’s total revenue is generated by 20% of customers. Studying the habits of these customers can reveal purchase patterns that help form the ideal customer profile. Further study of demographics and psychographics shows important personality traits and geographical influence that shape consumption behavior. A combined list of these attributes helps in making the ideal customer profile, which is useful for sales reps in attracting and engaging prospects that have higher chances of converting into a company’s customers.
SWOT Analysis
SWOT Analysis is the measure of strengths, weaknesses, opportunities, and threats. Representatives from all business units should actively participate in the process for an authentic evaluation. This helps companies realize their potential and optimize their resources for maximum productivity. It helps them formulate improvement plans to overcome weaknesses and discuss ideas to minimize threats.
Market Strategy
After a detailed analysis of internal and external positioning, companies should now move forward and determine the future strategy for increasing sales and productivity. This requires the development of an effective market strategy.
This strategy is deep-rooted, beginning from an individual consumer to the attainment of yearly goals. Important factors that help direct the market strategy include.
- The growth in the company’s current accounts.
- Ways of getting referrals through loyal customers.
- Revenue maximization through the current product line in the existing region.
- The effect of new products on the revenue stream within the same territory.
- The expected revenue growth in new markets with existing products.
- The increase in revenue in new markets with an adapted product line.
Revenue Goals
Revenue goals should align with the company’s past performance and marketing strategy. These should be well communicated to the marketing, sales, and product teams. This helps them understand the expected outcome and lets them organize their workflows efficiently.
Market Positioning
A marketing strategy helps in defining the market positioning of the company’s products. Each market segment requires a different positioning according to the social, economic, demographical, and psychological attributes. A clear marketing plan depends on the following variables.
- Existing consumer profile.
- Opportunities for revenue growth with new products within the current customer base.
- Untapped revenue streams within current markets.
- Opportunities for B2B selling for voluminous growth in revenue.
Identifying these businesses and effectively communicating to increase awareness about the company’s product.
Formulating a well-aligned marketing and sales strategy.
Action Plan
The final step in sales strategy is the action plan. After clearly communicating the revenue goals of the company with essential background referrals, sales reps are now required to form individual goals aligned with the major revenue goals to streamline the process and improve their performance.
Before making an action plan, they should consider the following factors which will help them make a concise strategy.
- The amount of revenue generated from each product.
- The sales required to reach that revenue.
- Follow-up procedures to close the deal.
- The time taken to make a single sale.
