Cutting Costs

Ideally, every year-end brings a new sales plan. It is at this time that the company’s management begins to question itself: how can we increase our sales?

After all, selling more means growing, right?

And growing means taking over the market or preventing the advance of competitors.

This is the logic of most companies. However, this is a 2D view. Sales planning has only one discussion: what is the right goal for this year?

After all, not reaching a goal means having to explain yourself to investors or the market, in addition to generating internal demotivation.

For this reason, throughout the year, the sales team is punished for the unfortunate view of the company’s management. And, to correct this problem, sales expenses are multiplied.

How the crisis changes your sales planning

The crisis changes the dynamics of common planning. Companies start to tighten their belts and realize they need to cut costs and streamline management.

For the sales area to adapt to such a situation, two goals must be achieved:

  • Increase the predictability of the process, reducing pressure and demands on the team;
  • Find ways to hit targets with a tight budget, increasing control over planning.

It is amazing to realize that tactics that seek to optimize the sales process are still rare, after all, it is the easiest to “pay for itself”, the argument is that it is selling enough to invest more in it.

And I see many managers forgetting that there is an even bigger goal than the growth of an established company: profitability.

Without an efficient sales process, with modern management, it will not be possible to achieve the two main objectives: predictability and control over planning. In the same way that it will not be possible to go further and have a three-dimensional view: understand that the sales team can deal with cost-cutting and continue to increase its results.

How to do this?

1. Training

If a team needs to improve its efficiency, the simplest way to do this is to train it better. In sales, your goal when training the sales team is to close more sales.

By closing more sales in Taj Residencia Islamabad, the same period of time as before, you are increasing operational efficiency, that is, investing the same amount (in terms of salary and work tools), but reaping a greater return.

In other words, you are diluting your costs and, consequently, impacting the indicator to be analyzed, the CAC (Customer Acquisition Cost), which falls as your team increases sales.

To train your team, you can choose from two options:

  • Sales Course
  • Sales Coaching

2. Recast

Reshaping means firing and hiring new talent.

The first one is never easy, but you should look for the right signs to fire someone from your team, minimizing mistakes.

For the second, you need to know where to look for talent and how to structure your selection process.

However, the redesign increases costs in the short term. It brings the return due to the difference in salaries, as you bring cheaper professionals who will be trained for a while to deliver the expected results.

Sales planning is greatly affected if the reformulation is done during the middle of the year, as new team members have a learning curve.

Furthermore, the investment in training the team must be placed in the final account.

However, if you already have an onboarding process for new contributors, things are easier and the result appears in less time.

Having a team of young talents also has its good side, as the team’s potential should be great (if you’ve hired well). Working on this potential, it is possible to achieve results above expectations and positively surprise.

3. Inside Sales

If you have a process based on field/outside sales, external sales or field sales, you know that expenses weigh heavily at the end of each month. In a country like Brazil, for example, you experience two clear cases:

  • Teams that need to travel frequently, increasing expenses due to the high cost of tickets, accommodation and food throughout the day;
  • Teams located in large centers, which suffer from traffic and waste a lot of their time between meetings.

The Inside Sales process can be your exit. In general, larger tickets require face-to-face contact to build rapport and even the amount invested to justify the transit of the sales team.

However, you can initiate a transition process, where leads are serviced remotely until their profile qualification and positive feedback on maturity occur.

After all, many companies end up wasting their money by allowing their sales team to visit customers who haven’t yet been qualified.

The Inside Sales process can also help your team with lead education, reducing the number of face-to-face meetings needed.

For starters, you can read more about the five inside sales hacks we recommend for every sales manager.

4. Inbound Marketing

If you haven’t structured your Inbound team yet, you should seriously think about it. The initial investment for the Inbound process is higher than for Outbound, but the advantage is that the process works with sales in scale.

When implementing with quality, you start to bring new leads with less effort, increasing your marketing efficiency.

Therefore, costs are diluted by the high volume of MQLs and SQLs delivered, generating positive ROI and justifying the initial investment.

If you want to read more about how to start your Inbound, you should learn about Content Marketing too.

Therefore, I recommend that you visit the Digital Content Marketing and Results blogs.

You’ll find all the tips you need, as well as the tools you need to accelerate your results.

5. Hunters and Closers

Another alternative to increase efficiency is to divide your team between Hunters and Closers: Hunters are responsible for prospecting and Closers convert leads into customers.

The biggest benefit of this separation is that you form teams of experts. By studying more and understanding part of the funnel, the results tend to increase naturally.

It’s that maxim: “Who does everything, does nothing well”. In a new sales plan, your job is to make sure that doesn’t happen again.

If your teams start to generate more MQLs and SQLs without a new investment, this naturally leads to a decrease in CAC.

We did a study on our clients some time ago and the results of generated leads were proven:

Process without division between Hunters and Closers Process with division between Hunters and Closers

If you want to learn more about how to structure your team, download our free eBook: How to structure your outbound team.

6. Consulting

Hiring a consultancy means, again, investing to reap the rewards. In general, a consulting project means cutting costs and, given the experience of the allocated team, you start to reap the rewards right from the start.

The difference, when hiring a consultancy, is knowing that professionals are already used to situations and scenarios similar to theirs and will make less mistakes in decision making.

If you take it into account, there is also a high opportunity cost involved. Internal opportunities may involve topics outside your current area of ​​expertise, so learning time counts as an investment.

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A consultant, on the other hand, already has experience or needs to be dedicated to helping him, seeking to learn on his own everything he does not know, without charging over time, considering that the scope of the project already involves these changes.

At the same time, you can follow the consulting project while you are still carrying out your activities, making it less disruptive to your already busy routine.

With results showing and a positive return on investment, you can already reap all the rewards with a lean and efficient team.

Do you want to know what a sales consultant does? Check out our infographic!

Final Tip: Don’t wait for things to tighten

As a former manager and living daily with several colleagues in the same position, my final advice is: don’t wait for the crisis to knock on your door.

Having a lean team is important. Being concerned about an efficient process is the way to continue improving your results without taking unnecessary risks.

After all, this is one of the reasons that lead to the resignation of the sales manager.

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