all the existing customers . This approach to sales is also known as up-selling . Key questions are : What else can we sell to the current customers ? How can we work with customers to grow their business with us ? Remember , we already have an existing relationship , business structures , and trust . Coming up with joint plans to ensure the growth of the current business is imperative . Sometimes you ’ ve got to have all your eggs in one basket as long as that basket is secure . It ’ s our job to give our customers that sense of security .
While securing current customers is the sales engine , acquiring new customers fuels growth . If the company realizes that it ’ s struggling to attract and acquire new customers , it should worry . The rate of generic industry growth and the growth phase of the entire industry inform the contribution of sales from new customers to the total sales . If the industry , in general , is in the growth phase , a significant number of new customers will be expected . Each company must build an internal capacity and competency to attract and recruit new customers . New customers must come from the competition when the industry growth phase is mature or declining .
Most managers struggle with sales because they don ’ t take the time to figure out where they want to go and what sales strategies or means will get them there . So , they also fail to implement other critical operational plans . For example , if you don ’ t figure out the sales volume contribution you need
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There is no need to apply effort to chase new sales while your bottom is busy leaking sales . Keeping those customers continually engaged and happy is critical . That ’ s the work of a robust customer service team .
from current and new customers , you will never figure out the most appropriate sales structure and the skills required . If sales from existing customers contribute more than 60 percent of total sales , a solid customer service team that engages and takes care of them is needed . Alternatively , you may have specialized key accounts reps to retain and grow the key accounts business . You may also have another team exclusively prospecting and recruiting new customers .
As you may notice , new customers prospecting and recruitment may require different skills from account management . Therefore , management must evaluate their teams ’ ability to determine if the same team will perform both roles . If a territory rep is recruiting and managing the existing accounts , time spent on each role , based on importance , must be specified . For example , a representative could spend 60 percent of time growing and maintaining existing accounts and 40 percent cent recruiting new customers .
Weekly , monthly and yearly reviews are essential . Most imperative is to evaluate what impact each sales or marketing action had on the sales numbers . Besides strategy relevance and implications , a full review also assesses the quality of strategy execution . At the review stage , also ask what change is required , whether tactical , operational , or strategic . A quarter ’ s blip in sales , don ’ t warrant a change in the entire distribution structure , sales team organogram , entire trading terms programs , or other core sales structures , programs , and processes .
So , next time , look for insights in the sales trends , and if you cannot relate a growth to any deliberate effort , you ’ re a mere sales spectator , ask for an armchair .
Herman Githinji is a Management Consultant and a Director at Rhombus Ready Mix Concrete Company . You can commune with him on this and related issues via email on : Hermangithinji @ gmail . com .