Part II SALES FORCE ACTIVITIES. Chapter 3: Sales Opportunity Management. Sales opportunity management. One way to increase productivity is to focus sales force time on those prospects that have a probability of becoming an important customers. Sales Opportunity Management. Generating New
Sales Opportunity Management
Figure 3-1: What’s the Best Way to Grow?
_ All companies receive direct inquiries about products or services from potential customers.
_ Direct mail is an excellent way for locating prospective customers.
_ The use of e-mail inquiries has made it possible to increase the speed with which companies can respond to a direct mail inquiry, which helps to increase the rate at which inquiries are converted to sales.
_ Are also an excellent way for generating good prospects.
_ There are two reasons in growing the popularity of the trade shows which are:
Note : trade shows don’t permit the writing of orders.
_ Special direct inquiry directories and open to bid announcement are important sources of leads for many firms.
_ It has revolutionized the process of selling and qualifying prospects.
_ With referrals, a satisfied customers is asked to provide the names of others who might be interested in the product.
_ The person may also supply an introduction of the salesperson to the prospects.
_ The advantage of referrals is that the person can say things about the salesperson and the product line that might not be as credible coming directly from the salesperson.
_ Qualified leads are those that have a use for the seller’s goods or services and are planning to buy in the near future.
_ A prospect that is satisfied with the present supplier and has no desire to change is going to be very difficult to convert into the customer.
_ Business to Business salespeople often have problems identifying who has the authority to buy within an organization because of the number of people involved in making a purchasing decision.
_ Finding prospects that want a product and also have the authority to buy will not be productive if they lack the financial resources to buy.
_ Salespeople should make an initial screening of prospects on their ability to buy, the objective is to eliminate prospects who represent too high a credit risk.
Breakeven Sales Volume
(Cost per Call) x (Number of Calls to Close)
Sales Calls as a % of Sales
No. of Total Sales Total Total calls Sales ($)
Account Accts. Accts. (000) Sales Per Classif. Per Call
Classification (1) (2) (3) (4) (5) (6)
A 21 15% $910 65% 105 $8,667
B 28 20 280 20 140 2,000
C 91 65 210 15 455462
Totals 140 100% $1,400 100% 700 $2,000 (Avg)
Accounts are very
Invest heavily in selling
Accounts are potentially
May want to invest
Accounts are moderately
Invest enough to maintain
Accounts are very
of selling resources.
Dollar Sales per Quarter
1 2 3 4 5 6
Number of Sales Calls Per Quarter
Figure 3-3: Number of Sales Calls Response Function
3. Best few Opportunities: all the buyers have been contacted and their needs identified and in your judgment have been developed to make the sale.
50% closure probability
75% closure probability
90% closure probability
Figure 3-4: The Sales Funnel
1. The company’s discount rate ( Cost of Capital )
2. The company’s planning Horizon
3. The customer’s product category purchases in each period
4. The average contribution from purchases
5. Each supplier’s share of total category purchases.
7. Indecision and procrastination
8. Attempting too much at once
9. Leaving tasks unfinished
10. Unclear communication
Note : It’s important in time management to know when the customer is available.
* In time management we used a framework which based on two criteria
Figure 3-6: Time Management