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Grow Your Business!
Focus on Customers
to Increase Your Sales
The SCORE Foundation
would like to thank
for showing their support of America’s small businesses
by sponsoring this series.
The content provided in the Grow Your Business! materials is intended as a
business resource only and does not guarantee a successful outcome when
applied to individual business use.
To find additional resources on growing your business,
visit www.score.org and www.openforum.com
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A Special Thanks to Our Local Sponsors
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Classroom Safety – Argosy U
Emergency
Exits
Restrooms
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not wander
around the
building!
You are HERE
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Classroom Safety–ComCenter
Emergency
Exits
Restrooms
You are HERE
Please do
not wander
around the
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About SCORE
• Successful and experienced business owners
and executives acting as volunteers
• Free ongoing mentoring:
One-on-one
E-mail
Signup on our website – Mentoring Tab
Douglas S. Cavanaugh
• Seminars and workshops
• Resources for small business:
manasota.score.org
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Assessing Your Business
The SCORE Business Needs Assessment, it is in your
packet. Download at: http://tinyurl.com/8j7fkgw
It will help you assess the current state of your
business in 5 key areas:
1. Management
2. Marketing
3. Sales
4. Finance
5. Operations
Review with your mentor to help you:
Decide what additional workshops to attend
Develop a customized business improvement
plan
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Workshops - Business Focus Areas
Customers – Impacted by All Functions in Your Business
Marketing Essentials to Attract More Customers
Marketing
Sales
Focus on Customers to Increase Your Sales
Customer Service
Improve Your Services and
Gain Productivity
Service Delivery
Purchasing / Manufacturing
Find Ways to Improve Cash Flow and Profits
Distribution
Finance
Business Owners / Management - responsible for Business Performance
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Let’s Get Started
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Briefly tell us about you:
Katrina Markoff
• Your name
• Your business
(30 second “elevator” speech)
• Do you already have a SCORE mentor?
• What you hope to achieve during and
after this workshop
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During this workshop we will discuss:
Marta E. Maxwell
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• How to choose effective distribution
channels
• How to evaluate your sales process
• Who should be on your sales team
• Strategies to motivate your sales team
• Potential for using Customer Relationship
Management (CRM) tools
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Evaluating the Needs of Your
Business
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Evaluating the Needs of Your Business
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Is it Right For You?
Not every marketing strategy or sales tool is right for every business.
Ask:
• What strategy approaches might work for my business?
• Will this help achieve my goals?
• Will this reach my target customer(s)?
• What are competitors doing?
North American Industry Classification System (NAICS)
• Does this fit my budget?
• Do I have adequate staff?
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Expanding Your Distribution Channels
to Better Reach Your Customers
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Expanding Your Distribution Channels
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Understanding Distribution
Channels
Jennie Dundas & Alexis Miesen
Distribution channels are how your product
or service gets to the end user. Expanding
distribution channels helps grow your
business:
• Builds brand awareness and
recognition
• Multiple channels can decrease risk
• Enables you to reach more customers
• Potential to increase profits
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Expanding Your Distribution Channels
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Examples of Distribution Channels
Direct
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Sales Team inside sales and / or field sales
Online
Catalog
Storefront retailer
Indirect
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Wholesaler/Distributor/Dealer
Affiliates
Agent
Manufacturer’s Rep
Value-Added Reseller (VAR) – integrates your product in “custom” creations
Licensing
Multi-Channel/Hybrid
• Combination of Channels
• Joint Ventures
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Expanding Your Distribution Channels
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Channel Choices
As you assess distribution options, consider:
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What are my customers’ needs?
How could your product/service meet those needs?
Who is my ideal customer?
How can I find more of those?
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Expanding Your Distribution Channels
Andrew Dunn
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Customer Needs Influence Distribution
How do customers expect to buy?
• Customers simply purchase for their use:
• Online, local retail, or catalog/telephone
• Customers require product support or
specialized service at the time of sale /
delivery:
• Direct central sales or at the customer
locations or field product support team after
the sale
• Customers buy to sell to others:
Wholesale or third party drop shipping
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Expanding Your Distribution Channels
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Research Distribution Channels
In addition to your customer needs, consider:
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Competitors
Geographic locations
Strengths and weaknesses of options
Barriers to entry
Unit Cost
Pricing/profit
Sales/marketing impacts
Channel conflicts
Legal considerations - contract terms and conditions
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Expanding Your Distribution Channels
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Assess Options and Prioritize
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Ease of entry
Geographic proximity
Financial goals and risks
Estimated sales volume
Competitors’ positions
Your management experience
Your staff capabilities
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Expanding Your Distribution Channels
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Choosing and Establishing Channel
Partners
• Identify potential partners
Credibility and Reputation
Financial Stability
Marie Seipenko
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Establish partner relationship
Set goals
Train partner
Provide sales/marketing support
Minimize partner conflicts
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Exercise 1 - Distribution Channel Assessment
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Using the Worksheet in your folder, fill in your EXISTING primary
channel to market and then potential expansion channels
Fill-in your thoughts about pros and cons of each area list below:
Ease of Entry
Geographic Proximity
Costs
Competitors’ Positions
Management Experience
Staffing Capabilities
Marketing Needs
10 minutes to work and 10 minutes to discuss
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Exercise 1 - Distribution Channel Assessment
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10 minutes to work and 10 minutes to discuss
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Evaluating Your Sales Process
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Evaluating Your Sales Process
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5 Steps to Sales
Lead Generation
Prospecting
Customer/Client Contact
Negotiating
Closing the Deal
Customer service is key throughout the sales process.
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Evaluating Your Sales Process
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Step 1: Lead Generation
Jennie Dundas & Alexis Miesen
Marketing methods to generate leads:
• Advertising
• Online (website, including search engine
optimization, pay-per-click ads)
• E-mail
• Social media
• Personal Networking
• Client/customer referrals
• Trade shows
• Direct mail
• Public Relations
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Evaluating Your Sales Process
David Lomakin
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Step 2: Prospecting
Prospecting reaches out to leads using:
• Phone/cold calls
Call list purchase / internal customer database
• Email
• Personal networking
• Web social networking
• Direct mail
• Trade shows
• Referrals
What works for you now? (5 min)
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Evaluating Your Sales Process
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Step 3: Contact Customer / Client
• Ask Questions
• Find out any initial questions / concerns to help your
preparation
• Listen to the customer
• Qualify the prospect
• Set initial meeting
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Evaluating Your Sales Process
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Step 4: Negotiating
Douglas S. Cavanaugh Sr.
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Know your goals
Determine customer needs
Be prepared
Determine deal breakers
Understand Risk vs. Reward
Create win-win situation
Bartering? - may be an option
• Build relationship
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Evaluating Your Sales Process
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Step 5: Closing
Tactics for Closing:
• Provide a solution or opportunity for the customer
• Quality of the product offering
• Identify significance/value of product - Emphasize Benefits vs. Features
• Empathy, but working to overcome objections
• Create a sense of urgency
• Ask for the order AND know when to stop
Obstacles to Closing:
• Price may need to be negotiated
• Contact is not decision-maker – and this obstacle works both ways
• Product/service not needed
• Buyer fears – pricing, cash flow, product won’t meet customer requirements
• Timing
What successful tactics have worked for you? (5 min)
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Evaluating Your Sales Process
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Ongoing Customer Service
Acquiring a new customer costs 5 times more than keeping
an existing one*
• Follow up
• Resolve problems
• Build relationships
• Maintain customer history
• Evaluate Customer Relationship Management (CRM)
tools:
Katrina Markoff
• Salesforce (full features $$),
• Zoho (full features – free for 3 users)
• vtiger CRM (Open Source – Free or hosted $12/mo/user)
• Get referrals/testimonials
• Sell additional products/services
• Stay in touch
*Source: Gallup
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Evaluating Your Sales Process
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Using Technology to Enhance Sales
Customer Relationship Management (CRM):
• Differs from Contact Management
• History of interaction
• Share information
• Create reports/forecasts
• Spot trends
• Time management
• Consistent sales process
Choosing CRM Solutions: Simple and Scalable
Consider Open Source solutions – Free or Low cost (but often have
less support offered)
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Your Sales Team
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Your Sales Team
Setting Sales Goals
1
• Set
measurable
goals for
each step of
the sales
process
2
• Know your
ideal target
customer
3
• Measure
outcomes
constantly
and adjust
accordingly
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• Apply best
practices
techniques
to sales
process
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Your Sales Team
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Choosing Your Sales Team
• Telemarketing
• Dedicated Sales Team
• Manufacturers Reps
• Retail Associates
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Your Sales Team
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Match Skills to the Sales Process
• What steps in the sales process are the most
important for your business and why?
• What skills do your salespeople need to succeed at
those steps?
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Your Sales Team
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Telemarketing
Services can include:
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Inbound or outbound calls
Direct sales
Lead generation
Scheduling appointments
Surveying customers
Updating lists/customer info
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Your Sales Team
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Choosing a Telemarketing Firm
Elizabeth Perelstein
• What are your goals?
• Services needed
– Industry expertise
– Languages
– Extra services (scripts, reporting)
• Overseas or U.S. based
• Costs (per hour, commission, setup)
• Reps (tenure, training)
• Performance measurement
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Your Sales Team
Dedicated Sales Staff
Pros:
Cons:
 More dedicated to your
product/service
 Can train as desired
 You benefit from their
relationships
 Useful for complex
products /services
 In-depth knowledge of
your product/service
 Cost of full-time
employee
 Salary does not always
motivate
 May leave and take
accounts
 May not be needed for
simple products/services
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Your Sales Team
Manufacturers and Independent Representatives
Pros:
Cons:
 Cheaper than dedicated
sales staff
 Geographic knowledge
and connections
 Industry expertise and
connections
 Results-oriented
 Less dedicated than
internal sales staff
 Less control
 New reps have less
knowhow
 Contract is key
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Your Sales Team
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Finding Manufacturers and Independent Representatives
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Trade shows
Industry publications/websites
Social networks
Ask buyers
Rep associations (find at www.manaonline.org)
A good practice would be to try to build sales in the region before
seeing a representative, but this is not always required.
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Your Sales Team
Retail Associates
Retail associates can be a key differentiator for
small retailer
Jennifer Behar
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Assess job duties
Look for personality characteristics
Enhance knowledge
Train and motivate
Resource -National Retail Federation
www.nrf.com/
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Exercise 2 - Sales Strategy Assessment
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Using the Worksheet in your folder, fill in your EXISTING primary
sales strategy market and then potential additional strategies to
increase sales
Fill-in your thoughts about pros and cons of each area list below:
Will this help achieve my goals?
Will this reach my target customers?
Does this fit my budget?
Do I have the necessary staff?
10 minutes to work and 10 minutes to discuss
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Exercise 2 - Sales Strategy Assessment
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10 minutes to work and 10 minutes to discuss
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Motivating Your Sales Team
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Motivating Your Sales Team
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Creating Your Sales Compensation Plan
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• Set goals – for business and salespeople
• Performance measurements – for sales
• Payment formula – keep it simple
• Rules for managing the process
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Motivating Your Sales Team
Commission vs. Salary
Commission-Only:
Salary-Only:
 Motivates salespeople
 Paying for results
 May be insufficient for
new salespeople
 Can alienate salespeople
 Focus on quick sale
 Price-slashing
 Best for short sales
cycle
 Can demotivate
salespeople
 Eases learning curve for
new rep
 Creates teamwork
 Invested in company
goals
 Suited for long sales
cycle
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Motivating Your Sales Team
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Compensation
Marie Seipenko
Factors to consider:
• Sales cycle
• Job duties
• Tenure
• Experience
• Fringe Benefits
• Industry standards
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Motivating Your Sales Team
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Bonuses
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Additional incentive beyond commission
Tied to individual and company performance
Put it in writing
Typically paid at year-end
Graduated levels
Keep it simple
Make it motivating
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Motivating Your Sales Team
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Sales Incentives and Recognition Programs
• May be non-monetary
• Contests or compensation
• Set clear goals and rules
• Best for short-term results
• Make it meaningful
What are some of the sales compensation methods you have
successfully used? (5 min)
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Motivating Your Sales Team
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Developing Talent
Training and education options:
Doug Zell
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Industry associations
Online courses and webinars
In-house training
Focus on using best practices
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Helpful Resources
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Helpful Resources
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Sales Organizations
• Direct Selling Association (www.dsa.org)
• National Association of Sales Professionals(www.nasp.com)
• Professional Society for Sales and Marketing Training
(www.smt.org/)
• Sales and Marketing Professional Association (www.smei.org)
• Sales Force Effectiveness Benchmarking Association
(http://sfeba.com)
• Sales Lead Management Association
(www.salesleadmgmtassn.com)
Sales Compensation Software
• Callidus Software (www.callidussoftware.com)
• Makana Solutions (www.makanasolutions.com)
• Xactly (http://www.xactlycorp.com)
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Helpful Resources
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Potential Customer Management/CRM Software
• Infusionsoft CRM
(www.infusionsoft.com/integrated-contact-manager)
• Intuit QuickBase (http://quickbase.intuit.com)
• Oracle CRM OnDemand (www.crmondemand.com)
• Sage CRM Solutions (www.sagecrmsolutions.com)
• Salesforce (www.salesforce.com)
• SalesNexus (www.salesnexus.com)
• Zoho (www.zoho.com/crm) – free for 3 users
• Vtiger CRM (www.vtiger.com) – Open Source
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Next Steps
• Complete the Distribution Channel Assessment
• Complete the Sales Strategy Assessment
• Review the With Your Mentor handout for topics to discuss with
your mentor
Don’t have a SCORE Mentor? Connect with one today!
• SCORE has over 13,000 successful and experienced
executives with small business know-how that want to help
you
• Visit manasota.score.org and sign up on the Mentoring tab
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Help Us, Help You
Please fill out the workshop
evaluation form
Your feedback is important to
help us improve our programs!
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