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What is a sales strategy and how do you create one?

Companies have started talking about sales strategy and how it affects their performance in terms of sales. The words are being used quite often but not many people know the meaning of the words.

What do the words sales strategy means?

Sales strategy is said to be a plan that contains a step-by-step procedure that made either by the individual or the company to sell either their services or products so that they can increase the amount of money coming in. Companies use this strategy to repeatedly sell both their services and their products. It is, however, constantly tested, evaluated to see how it works and then it is optimized to ensure that companies get the results they desire.

Why is it important for a company to have one?

Not having one such strategy is sure for a company to ruin itself. That is how to depend companies are on such strategies. It is important for them to ensure not only their survival but also their future growth. The costliest mistake any company can make is focusing only on developing their products and how they can market it while ignoring their sales strategy.

How companies can develop the strategy needed to ensure sales?

Planning a strategy that will ensure companies have a steady flow of money is never easy. But there are some steps you can take to ensure it becomes a little bit easier.

Analyze the company’s past performance

The first thing that a company must do is thoroughly analyze their performance the previous year. This will help them understand the position they are in and why they are there. Once this is done they decide where they want to be next year and what all steps they need to take to reach there. To properly do this, the company should have a CRM software.

Clearly identify what kind of profile their clients should have

Majority of companies earn more than 75% of their revenue thanks to the spending of around 20% of their clients. This means that if companies want maximum return on their investment, they should focus on customers who are more willing to spend large sums of money and purchase more than one of their products or services. These customers are the ideal customers the company needs.

SWOT analysis must be done

Companies must determine how each of the accounts is performing in term of the revenue they generate. To do this, the company must get both its marketing team and its sales team together and perform a SWOT analysis.

Companies that SWOT analysis must not be done based on imagination. It must be done based on reality as much as possible. This analysis will help companies determine whether their strength can be used to gain new opportunities. Also, it helps them analyze the weakness and the portability that they can hamper their growth. The analysis will also help the company identify the possible opportunities that they can use and the treats that they face.

Develop a marketing strategy that is clear

After analyzing your strengths and weaknesses along with the possible opportunities available and threats you face, you should analyze how growth you can expect from your present accounts. How many referrals you can get from these accounts? Consider the possible increase in revenue taking into account different combination of existing territories, new territories, existing products and new products. After considering all of this, companies should come up with a marketing strategy. Getting revenue from existing accounts is the fastest way of generating income while entering new territory with new products is the slowest way of generating income.

Make sure revenue goals are clear

After completing analyzing situations both past and present along with other analysis, companies can merge their revenue targets with their strategy for marketing. After doing this they can set revenue goals that are realistic for both individuals and territories. Once this has been done companies should have a meeting between the product, marketing, and sales teams to devise a plan. They can use any of the free CRM available to track how each team is performing.

Understand the position the company is and communicate clearly to everyone involved

Once companies have a marketing strategy in place, they can use it to understand how their companies are positioned. Also, they can identify the products they can use to achieve the desired growth. After doing all this they must identify which accounts they must work on and communicate the same to their teams. They also identify the different opportunities present in territories (existing and new) and products (existing and new). These should also be clearly communicated to their teams.

Action plan formed should be clear

Companies can ask their salesperson to prioritize their work only if they provide them with a funnel that is well functioning and place a process that helps them plan for opportunities.

Only after companies have identified their source of income along with the amount of income that will come from each source, they would be in a position to create the funnels their sales person needs to access and get income from these sources.

Parting words

Any company that lets its salespersons and leaders make decisions without providing them with the big picture will end up getting decisions that are shortsighted. That is what will happen when the

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