Managing the Sales Force 305
Supervising Sales Representatives
New sales representatives need more than a territory, a compensation package, and
training—they also need proper supervision. Reps paid mostly on commission gener-
ally receive less supervision, while those who are salaried and must cover definite
accounts are likely to receive substantial supervision. In the course of supervising sales
reps, successful companies set norms for calls on customers and prospects, and they
help reps make the most efficient use of sales time.
Norms for Customer Calls
In the early 1980s, the average salesperson made five calls a day; by 1989, that number
had dropped to just 4.2 sales calls a day.^14 Today salespeople make even fewer in-person
sales calls because they are using phone, fax, and e-mail to sell. In addition, more firms
are using automated ordering systems to reduce reliance on sales calls.
How many calls should a company make on a particular account each year?
Research shows that additional calls generally produce more sales, but companies still
need to determine whether the increase in sales justifies the increase in sales costs.
Some studies—and experiences such as those of Amatil, discussed earlier—suggest
that sales reps may be spending too much time selling to smaller, less profitable
accounts when they should be focusing more of their efforts on selling to larger, more
profitable accounts.^15 Therefore, in setting norms, management needs to weigh the
cost of a customer sales call against the sales and profit payback for that account.
Norms for Prospect Calls
Knowing the high cost of sales calls, companies often specify how much time reps
should spend prospecting for new accounts. Spector Freight, for instance, wants its
sales representatives to spend 25 percent of their time prospecting and to stop calling
on a prospect after three unsuccessful calls. Other companies set prospect and cus-
tomer norms based on product sales, specifying, for example, that reps spend 80 per-
cent of their time selling established products and 20 percent selling new products.
Companies set up prospecting standards because many reps, left to their own
devices, will spend most of their time with current customers, who are known quanti-
ties, rather than with prospects, who might never buy. In general, selling to prospects
tends to be more difficult and more time-consuming than selling to established
accounts, yet it is the road to customer base expansion and closing more sales. This is
why some firms deploy a special missionary sales force to open new accounts.
Using Sales Time Efficiently
Not surprisingly, studies confirm that the best sales reps are those who manage their
time effectively.^16 One popular efficiency tool is configurator software to automate the
order preparation process. This type of program is offered by Massachusetts-based
Concentra Corporation, among others. On a sales call, reps can use configurator soft-
ware to present product specifications and pricing information, show customization
options, and handle scheduling. Integrating all of this information, the configurator
software can virtually write up the order in minutes. This software not only saves time;
it also builds goodwill by reducing errors and letting both customer and supplier see
the same information from the same source. Concentra’s customers say this software
has helped them increase sales and reduce cancellations.^17
Another tool is time-and-duty analysis,which helps reps understand how they
spend their time and how they might increase their productivity. In general, sales reps
spend time in (1) preparation (getting information and planning call strategy);