Create and Maintain a Sales Culture
Create and Maintain a Sales Culture. Buzz Raines – RVP, Region 6 Mike King – RVP, Region 16.
Mar 26, 2015
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Create and Maintain a Sales Culture
Buzz Raines – RVP, Region 6Mike King – RVP, Region 16
Objectives
Discuss how to create a CULTURE based on selling
Define the Sales Manager role and new responsibilities
Equip you to validate that the Sales Manager is:– Utilizing reports and systems – Coaching and training – Holding employees accountable
Agenda
What is a Sales Culture? Developing a culture of “selling” Four components of a successful sales
culture Management’s Focus on Execution
60 Years of Success!60 Years of Success!
Culture – “The attitudes and behaviors that characterize an organization.”
Two Facets of Our Business
Is it_______________?
A clean, stocked, safe store Greeting the customer quickly and
pleasantly Taking the customer to the product Prompt Phone Service Responding to a Customer Call Button
Are these examples of a sales culture …
…or examples of good customer service?
Sales CultureSales Culture vs.vs. Customer ServiceCustomer Service
In sales, what the customer first sees is Customer Service.
Customer Service is:
1. A clean, stocked, safe store2. Greeting the customer quickly and pleasantly3. Taking the customer to the product4. Prompt phone service5. Quick Response to customer call buttons
Sales Culture Goes Much Deeper
1. Qualifying2. Overcoming objections3. Selling the project, not just the product4. Closing the sale5. Customer follow-up6. Hiring the right people7. Teaching selling skills8. Setting goals and motivating9. Proper scheduling10. Tracking sales trends and micro-seasons
Too often, what’s supporting our Customer Service…
Custom
er
Custom
er
Sales CultureSales Culture
Service
Service
…doesn’t look much like a Sales Culture.
Benefits
Increased employee engagement Increased profit and margin Larger sales force
(More sales = More available payroll)
Potential Sales
59.6%
$489,620 = Average Sales Per Specialist
$1,488,000,000 = Topline Impact
$1,299,563
FOR YOUR STORE
$1,299,563
FOR YOUR STORE
Creating a SALES CULTURECreating a SALES CULTURE
the Programsthe Programs
the Strategiesthe Strategies
the Gearthe Gear
the Playersthe Players
the Playersthe Players
(plā ər) n. 1: a person who participates in or is skilled at some game 2: an important participant .
(plā ər) n. 1: a person who participates in or is skilled at some game 2: an important participant .
Sales ManagerSales Manager
Sales SpecialistSales Specialist
Store ManagerStore Manager
Management TeamManagement Team
“The wrong way….” video
Reenactment of how NOT to utilize the Sales Manager…to include the Sales Manager acting as MOD, building an endcap, driving a forklift, etc.
Sales Manager Role
Keypad Instructions
1 Per Person 10 seconds to respond Select one answer only
Please select a Team.
Answer Now
10
14%
14%
14%
14%
14%
14%
14% 1. Team MILLWORK2. Team APPLIANCES3. Team FLOORING4. Team CABINETS5. Team SOS6. Team INSTALLED7. Team COMMERCIAL
What percentage of time does your Sales Manager spend acting as MOD
on the floor?
Answer Now
10
0%
0%
0%
0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%
Survey Results
What percentage of time does your Sales Manager spend acting as MOD on the floor?
0%-25%
26%-50%
51%-75%
76%-100%
24.3%
41.5%
25.7%
8.6%
What percentage of your Sales Specialists do you feel are properly qualified for their current position?
Answer Now
10
0%
0%
0%
0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%
Survey Results
What percentage of your Sales Specialists do you feel are properly qualified for their
current position?
0%-25%
26%-50%
51%-75%
76%-100%
2.7%
14.1%
35.7%
47.5%
Which best represents the frequency you, the Store Manager, review specialty sales with your Sales
Manager?
Answer Now
10
0%
0%
0%
0% 1. Daily2. Weekly3. Monthly4. Never
Survey Results
Which best represents the frequency you, the Store Manager, review specialty sales with
your Sales Manager?
Daily
Weekly
Monthly
Never
51.3%
38.3%
7.0%
3.4%
Sales Manager Responsibilities
Recruiting and Hiring Specialists Train and Coach Drive Sales Sales Performance Accountability Specialist Meetings Production Office CBC programs
Sales Manager Role
Drive the Sales Culture– Hire, train and develop Specialists– Developing and training specialists
Performance Management– Monitor Specialist/Customer relationship– Meet sales goals– Reward good performance and recognize
poor performance
Sales Manager Role
Schedule Sales Specialists to ensure coverage
Validate customer follow-up– Understand and satisfy customer needs– Earn repeat business– Must happen EVERY DAY!– Closing the sale
Sales Specialists
2005 Store turnover = 44.4%2005 Sales Specialist = 40.2%
(8807)
8807
X 4000
$35,228,000
Sales Specialist Selection Tool
“I don’t work for that company…..” video
Reenactment
Store Manager Role
Support– Attend Specialist meetings– Recognize and rewarding great
performance Validation
– Sales Manager Accountability– Sales Specialist Accountability
Awareness Passion
Store Manager Role
“We are what we repeatedly do. Excellence then, is not an act,
but a habit.”
Aristotle
Team Scores
0 Team 1
0 Team 2
0 Team 3
0 Team 4
0 Team 5
0 Team 6
0 Team 7
the Strategiesthe Strategies
(străt’ ə -jē ) n. The science and art of using all the forces available to execute approved plans as effectively as possible.
(străt’ ə -jē ) n. The science and art of using all the forces available to execute approved plans as effectively as possible.
Close the SaleClose the Sale
Celebrate the SaleCelebrate the Sale
Qualify the SaleQualify the Sale
Which best represents the frequency your Sales Manager holds Sales
Specialist meetings?
Answer Now
10
0%
0%
0%
0% 1. Weekly2. Bi-weekly3. Monthly4. Never
Survey Results
Which best represents the frequency your Sales Manager holds Sales Specialist
meetings?
Weekly
Bi-weekly
Monthly
Never
80.4%
11.4%
6.3%
1.9%
Which best represents the percentage of time you (Store Manager) or the Operations Manager attends Sales
Specialist meetings?
Answer Now
10
0%
0%
0%
0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%
Survey Results
Which best represents the percentage of time you (Store Manager) or the Operations
Manager attends Sales Specialist meetings?
0%-25%
26%-50%
51%-75%
76%-100%
48.0%
20.9%
13.8%
17.3%
5 Steps of the Sale
Greet
Qualify
Features and Benefits
Overcome Objections
Close the Sale
Strategies
Observe the specialists as they interact with the customer
Celebrate sales!– Morning Huddles– Tuesday Sales Meeting– Wednesday Specialist Meeting– NOW!
Store Manager Performance Guide
•Attend Sales Specialist meetings
Strategies
Close Rate - Appliances
Lowe’s Close Rate = 53%
Competitors Close Rate Home Depot = 40%Best Buy = 41%Sears = 64.7%
Close Rate - Flooring
Lowe’s Close Rate = 53.1%
Competitors Close Rate Home Depot = 57.4%
Close Rate – Kitchen Cabinets
Lowe’s Close Rate = 52.2%
Competitors Close Rate Home Depot = 60.8%Sears = 73.7%IKEA = 79.5%
Close Rate - Millwork
Lowe’s Close Rate = 44.4%
Competitors Close Rate Home Depot = 51.1%Menard’s = 58.3%
What if___________?Category Lowe’s close
rateTop industry
close rateIncremental sales,
if we closed at benchmark*
Appliances 53% 64.7%
Flooring 53.1% 57.4%Kitchen Cabinets 52.2% 79.5%
Millwork 44.4% 58.3%Installed Sales (combined) 51.3% 75%
Total
* Based on 2005 sales
$471,526,665
$124,762,484
$500,283,592
$410,108,250
$609,226,506
“Waiting for the call…” video
How do we improve close rate?
CALL THE CUSTOMER! Leverage sales promotions Offer services Credit/Quick Screen Sales Manager validation Follow-up
CALL THE CUSTOMER!
1.12.21.13.31.13.4
1.12. 2, F10, then F5
F5
1.12.2 , F4
F4
1.12. 2.
How do I reassign an estimate to a new sales person?
1. Select Estimate , Shift F92. Shift F13. Tab to Salesperson number, change to new
salesperson number4. F9 (Three Times)5. F10 Save Estimate6. F9
1.12.2
1.12.2
1.13.3
1.13.3
1.13.4
1.13.4
Team Scores
0 Team 1
0 Team 2
0 Team 3
0 Team 4
0 Team 5
0 Team 6
0 Team 7
the Programsthe Programs
(prō grăm) n. A series of steps to be carried out or goals to be accomplished. (prō grăm) n. A series of steps to be carried out or goals to be accomplished.
SOS SOS
Installed SalesInstalled Sales
Commercial SalesCommercial Sales
On a monthly basis, my Sales Manager allows a minimum of 4 hours for me to train on product and/or selling skills.
Answer Now
10
0%
0%
0% 1. YES2. NO3. UNCERTAIN
Survey Results
On a monthly basis, my Sales Manager allows a minimum of 4 hours for me to train on
product and/or selling skills.
YES
NO
UNCERTAIN
51.9%
28.7%
19.4%
The production office gets completed details back to me on the day they are
returned from the installer_______________ of the time.
Answer Now
10
0%
0%
0%
0% 1. 0%-25%2. 26%-50%3. 51%-75%4. 76%-100%
Survey Results
The production office gets completed details back to me on the day they are returned from the installer_______________ of the time.
0%-25%
26%-50%
51%-75%
76%-100%
12.5%
10.0%
19.0%
58.4%
What percentage of our stores consistently print and call every
customer contact from the monthly prospect mailers?
Answer Now
10
0%
0%
0%
0% 1. 10%2. 35%3. 65%4. 80%
35%
2006 Commercial Sales Initiatives
Store Manager/District Manager Execution of The Commercial Business
Management System Execution of the daily Checklist Staffed to matrix for Commercial Sales and
all support groups Entire store is aware of Commercial Program
and the role of each management position
2006 SOS Initiatives
Store Manager/District Manager Make sure all sales positions are staffed
with sales-oriented associates that know the product
Ensure all sales associates are certified in SOS
Ensure the Mgmt Team is setting the example to offer SOS and to ask for the entire project
Support the SOS program by recognizing outstanding performance
2006 Installed Sales Initiatives
Store Manager/District Manager Ensure Specialists & Production Office
staffed to matrix Ensure Sales Manager position filled with
qualified individual who is capable of achieving specialty sales goals
Ensure appropriate corrective action is taken on all exceptions”
Ensure you and your store team develop a strong working relationship with your installers
Team Scores
0 Team 1
0 Team 2
0 Team 3
0 Team 4
0 Team 5
0 Team 6
0 Team 7
the Gearthe Gear
(gîr) n. Equipment consisting of miscellaneous articles needed for a particular operation.
Commercial Business Management System
Reports
Lowe’s Learning Center
Sales Manager Pocket Card
Pocket Guides
Sales Card
Which best represents the frequency your Sales Manager discusses
customer follow-up and current status on pending items in Lead
Management?
Answer Now
10
0%
0%
0%
0% 1. Daily2. Weekly3. Monthly4. Never
Survey Results
Which best represents the frequency your Sales Manager discusses customer follow-up and current status on pending items in
Lead Management?
Daily
Weekly
Monthly
Never
48.9%
42.2%
4.5%
4.4%
My Sales Manager reviews my close rate on all detail fees.
Answer Now
10
0%
0%
0% 1. YES2. NO3. UNCERTAIN
Survey Results
My Sales Manager reviews my close rate on all detail fees.
YES
NO
UNCERTAIN
55.1%
14.8%
30.2%
My Sales Manager discusses my sales performance with me at least weekly,
with recommendations for improvement if needed.
Answer Now
10
0%
0% 1. YES2. NO
Survey Results
My Sales Manager discusses my sales performance with me at least weekly, with
recommendations for improvement if needed.
YES
NO
71.3%
28.7%
Commercial Business Management System – Phase II
Features Electronic Processing
of Customer Follow-up
Addition of a Margin Column per Customer
Automatic Sorting of Customers’ sales year-over-year
BenefitsPaperless
Easier for Management to Review
Analyze margin on the account to ascertain if we are project selling
Instant evaluation of year-over-year sales
Reports Specialist Performance Report
Page 2 Specialist Performance ReportData shown for ‘Last 4 Weeks’ represents payroll periods 6/19/2004 through 07/16/04. YD data include all information since 12/20/03.
Grimes, Michael 49.5 6/21/1999 37.8 $172.076 $39,986 $1,974 26.6% $1,129,772 $232,872 $19,820 25.4%
LAST 4 WEEKS YEAR-TO-DATE
Loc Employee Avg Hrs Hire Months in Total SOS Installed Margin Total SOS Installed Margin
Last 4 wks Date Position Sales Sales Sales Sales Sales Sales
District
APPLIANCES
Total
Sales
Page 1
Avg for APPLIANCES 21.2 $84,419 $10,685 $3,266 26.2% $514,718 $75,826 $22,644 25.4%
Months in Total SOS Installed Margin Total SOS Installed Margin Position Sales Sales Sales % Sales Sales Sales %
LAST 4 WEEKS YEAR-TO-DATE
Reports
Specialist Exception Report
Reports Top 25 Sales Specialists
Reports
Reports (1.13.9)
Lowe’s Learning Center Selling Skills Focusing on the Close Product knowledge courses
Sales Manager Pocket Card
Sales Manager Top 5 Measures of Success
Observe Sales Manager’s interaction with SpecialistDiscuss/Review Progress vs. Budget with Sales ManagerDiscuss/Review Vital Stats with Sales ManagerDiscuss/Review Specialists performance to budget with Sales Manager and conduct
follow up as neededReview Lead Management/Order Management systems with Sales Manager
Sales Manager Top 10 Follow-Up Activities
Review and sign off on Sales Managers Daily, Weekly, and Monthly checklistAttend Weekly Specialist meeting and be sure the following occur:Review Customer Complaint Log BookVerify Commercial Sales Daily Checklists is completeVerify that Sales Manager and Administrative Manager partner to monitor SOS marginVerify that Weekly Specialist Meetings are not held on Monday’s or Friday’sEnsure Specialists are monitored by the Sales Manager through LMS and OMSEnsure Sales Manager promotes and monitors training for all Specialists and CSA’s in
their responsible departmentsStore Manager and Sales Manager has made arrangements for the “How To’ clinics
for the weekObserve that the Sales Manager leads by example when it comes to Customer
Service
Pocket Guides/Sales Card
Sales
Guide
Team Scores
0 Team 1
0 Team 2
0 Team 3
0 Team 4
0 Team 5
0 Team 6
0 Team 7
creating a SALES CULTUREcreating a SALES CULTURE
the Programsthe Programs
the Strategiesthe Strategies
the Gearthe Gear
the Playersthe Players
“What happens when it all comes together…..” video
Focused on Execution
Instill the Sales Culture in your employees Sales Manager Role
– Drive Sales- Big 3
– Recruit, hire, train, develop Specialists– Monitor Sales Performance
Store Manager Role– Support the Sales Manager’s Role– Validate
Tools
THANK YOU!THANK YOU!
Please leave your keypads on the table
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