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Sales personnel and responses to staff turnover.

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Introduction

Content Page 1. Introduction 2. High turnover rate of salespeople 3. Morale 4. Potential Problems 5. Action Plans 5.1 Solution 1 5.2 Solution 2 6. Compensation Plans 7. Compensation Plans Reforms 7.1 Incentive Pay 7.2 Holiday Trip Incentives 8. Conclusion 9. References 1. Introduction Sale is the exchange of goods, property, or services for an agreed sum of money or credit. In short, to have a sale is the exchange of something for money. Sales are taking places almost everywhere in our everyday lives. Be it small-scale sales like in the shopping malls where shops sell its merchandises, to larger scale ones whereby two companies' representatives meet to discuss the sales exchange between each other's company The sales industry is a very important part of the world economy. Sales are what keeping the money of the countries all around the world circulating. One party provides the goods, the other gives money in exchange. This will help the countries to develop economically and make revenue not just for the country, but also for the companies in the country. The sales industry is an ever-growing one. The growth rate of the industry has become exponential in the recent years due to the fact that most of the economies around the world are doing quite well. The US Census Buereau conducted a "Annual Retail Trade Report" of the retail sales industry of United States. According to the statistics provided by the Bureau, from 1992 to 2008 the retail sales of the United States grew from about 1,800 billion to about 4,400 billion dollars. That is about a big increase of 218% in the retail sales industry in less than 20 years' time. From this statistics provided, we can clearly see that the sales industry is doing really well in the recent decades. Even though the statistics proves only the retail power of the United States, we can expect similar results from other countries around the world. ...read more.

Middle

Some of the ways are through team restructuring and through training. One way is to train the salespeople. Training not only will help improve each individual salesperson's skills, it will also make them more productive. Morale will rise because when a company sends its employees for trainings, it is a way of telling these employees that they are valuable to the company. That way, they will be more willing to work for the company. And training is the other way around if there is no mentors to guide the novice salespeople along the way. One effective way is the 8 steps of The Selling Process. Knowing about the Selling Process would make a sale more pleasant and efficient for both the customers and salespeople from the start to the end. The 8 steps start from "prospecting", which let the salespeople know how to identify potential customers. Then is "pre-approach" and "approach", where the salespeople know more about and get attention. After "approach", they'll have to do "needs identification" where the salespeople find out about the needs of the customers. "Presentation" and "handling objections" are part and parcel of sales. Training in these areas will help improve them. Then "closing the sale" and "follow-up" is where the salespeople confirms customers' buying decisions and ensure that they have a good experience with the company's products. Knowing and improving on The Selling Process will definitely make sales better and with the power of word-of-mouth, sales will increase in due time. With the process, the customers would have a better sales experience with the sales people and would not be discomforted. With lesser unhappy customers, the salespeople's morale would rise, and they can better serve the customers. 5.2 Solution 2 Besides training, another method is to break down the group of salespeople into smaller groups and have them target at the different groups of customers. With the decrease in the number of salespeople, the company has to manage them more appropriately. ...read more.

Conclusion

But with a high turnover rate of salespeople, it is not a good sign for the company. High turnover rate means they have lesser salespeople. Causes are usually employees' low morale and environment, and many other reasons. It would lead to lower productivity, and eventually fall in the company's revenue. Employees' morale, being one of the main causes, is the driving force of the company. It is a very important factor that the company must look into. Not taking care of it could lead cause the company to unneeded loss. Low morale is linked to lower productivity, and lower productivity and lower sales, which proves to be a potential problem for the salespeople. Not just that; lower sales would tend to tempt the salespeople into unethical doings, like stealing and misinterpretation. There are ways to solve the problems; through training and regrouping. Through training, the salespeople will have to grasp the 8 Steps of the Selling Process. These 8 steps would make a sales experience better for both the salespeople and the customers. And through regrouping into inside salespeople, field representatives, and account managers, the company's team of sales people can better reach out to the customers, both current and potential ones. But the best direct method to resolve the problem would be to try to lower the high turnover rate of salespeople in the company. Making changes to the company's compensation plans for its salespeople is the most direct way of lowering the turnover rate. The company can offer incentive pay or bonuses, or both, to help motivate the salespeople. Another type of incentive is to reward holiday trips. This method also proves to be quite successful from the live example. All in all, the issue of dealing with the employees' low morale is very important for all companies out there. It cannot be ignored; there are heavy costs to pay if the company were to ignore the potentially disastrous problem. There are different methods to deal with low morale in different industries. In the sales industry, this would be one of the ways on how to deal with the problem. 9. ...read more.

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